Buy car cash, or finance and use cash to invest?

[Dave Kush]

Thank you for reading my question.

I have been saving up cash to buy a truck, which I'd be using for both business and personal purposes. Assuming I can get a good rate on auto financing, wondering if it would make more sense to use that cash towards getting my next brrrr, and just borrowing the money to buy the truck instead. 

I have been trying to reduce my personal debt and am down to only the mortgage on my personal residence.  This seems like a way to get both the new vehicle and perhaps close my next deal, but I also want to make sure I'm not just talking myself into more personal debt. I have high W2 income, and have no problem handling the payment on the vehicle.

I don't really mind paying cash for the vehicle, except that I could instead increase my ability to purchase the next brrrr. I'm trying to take advantage of buying in cash.

Would love to hear people's opinions on this as well as what other factors I should consider as I weigh the options. Thank you for taking a look. 

[Allan Smith]

This gets into the realm of personal finance, which despite being different for everyone, still has some timeless principles.

generally, stretching to buy a car that takes enough cash to make you think twice about it is not ideal for growing wealth and reaching financial independence. Not to sound too much like a dad, but I would skip the nice truck and get something for 10K cash or so. Then later your real estate Investments can buy the car for you if it is that important to you.

[Jack Mawer]

Save cash for the BRRRR! - an appreciating asset outweighs a depreciating asset.

[Devin James]

Hey Dave Kush,

Im definitely on the side of financing the vehicle. That cash will do much better deployed in an asset.

[Steve Vaughan]

Financing a vehicle is not what I would recommend. Don't finance things that drop in value.

This is much more than a math question.  You will tend to get more than you need and not negotiate as hard. 

Your mindset will shift to an investor one without a payment and will affect positive decisions in all you do to grow.

Budget down to the minimum you need and pay cash.  

[Caleb Brown]

How expensive is the vehicle you are looking at? Personally I would go middle of the road. Use the funds to invest.