I am pushing my next post in the used car buying tips series (read part 1 and part 2 here) to tomorrow, in order to squeeze this one in.
We recently bought a 2005 Toyota Corolla with 21 K miles on it. Earlier, I did not disclose the price, but it will be relevant here, so let me say that we paid about $12,200 as the drive-out price [drive out price = final price after taxes and other fees]
We had the option of financing the used car at about 7.0% APR, but we still chose to go ahead with paying cash for it (a decision which I now question .. sort of).
One of the most important reasons for the cash payment was my almost-all-cash portfolio. The cash has been sitting there in high-yield savings accounts, but it hasn’t been invested in the stock market. So, although I have been making the cash work for me - it’s not realizing it’s maximum potential (which it would have realized if it was invested properly). Anyways, all that cash sitting there made me think - “heck, if I have the cash, why go for the auto loan?“. Plus, paying cash would be totally hassle-free, which further encouraged the decision. However, in retrospection, I am not convinced that it was a “money-smart” decision. I think we totally ignored the leverage aspect of the loan. Here are a few thoughts on the subject.
Paying With Cash
To the casual observer, not availing a car loan may seem to be the *smart* thing to do - because you won’t be paying a dime to the bank in the form of interest on your car loan. So if you car costs $X, you pay exactly $X and the deal is done.
But one has to keep in mind that, in doing so, you will be losing the earning potential of the cash (in our case we are going to lose the interest it was earning through the online savings accounts).
Let’s run some basic math (crude approximations), include the cost of lost interest, and see how much paying in cash will cost us over the next four years (that would have been our loan term).
- Cash paid: $12,200
- Car loan interest costs: $0
- Interest lost on cash (48 months @ 5.15% APR): $2790
- Total cost of the car: $14,990
Plus, paying with cash has a few psychological perks like not having to worry about paying additional monthly bills, not being “under debt”, etc.
Paying With Auto Loan
On the other extreme, if we had availed the car loan @ 7.0% APR, our numbers would have been:
- Cash paid: $0
- Car loan interest costs + principal (48 months @ 7.0% APR): $14,022
Interest received on the unspent cash (48 months @ 5.15% APR): - $2790
[read TFB's comment below - I knew something was amiss 
]
- Total cost of the car: $14,022
What!? what happened here? I am definitely missing something. How does the car loan come out to be cheaper in the long run?
Well, there is one flaw in the above calculation - it’s in the assumption that the entire $12,200 is available for earning interest in savings accounts. You have to realize that you are paying off the car loan (with monthly payments of about $292) from the unspent $12,200 cash. So each year, your cash reserve goes down, and so does the interest earned on it. But even if you consider the extreme scenario in which you didn’t earn any interest on the unspent cash, the total cost of the car still comes to about $14,022 - that’s still cheaper than the first option. You could probably account for taxes in the first scenario and that way it won’t make too much of a difference (in our particular case). But, if you are earning say 8%+ return on your money in the stock market, going for a used car loan (typically around 6~7%) might be the best option for you, instead of paying cash ~ or that’s how I am figuring it out.
Of course, now that we have paid cash, we won’t have the “psychological” feeling of being under debt (in a Dave Ramsey style), but I am not sure if that’s worth about $900+ over the next four years.
Btw, if you don’t consider the cost of lost interest/returns, then it is obvious that paying cash is a better choice; but we are sort of going beyond that thinking in this post.
What do you have to say about this? am I doing the right thing in considering the cost of lost interest (lost returns) in the total cost of the car?
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Golbguru,
You have created a mathematical illusion by looking at only the car and savings transaction:-) To get a realistic picture, you have to consider your total available funds.
In your example, you didn’t include that $292 monthly payment. It needs to come from somewhere - either from savings or from giving something up in your monthly expenditures. Also, you didn’t include that you don’t need to reduce spending or saving if you pay cash. If you include everything, I think net cash outflow should be lower with the cash version, or you have to reduce spending elsewhere.
For reference, the logic I shared doesn’t work if your savings interest rate is higher than the loan interest rate. In the case where saving interest is higher, it may make sense to borrow. But I bet there is a certain gap that’s needed to do better than break even.
This is another reason why I’m against Dave Ramsey. He’s great on the psychology side of things, but he’s not so good on the math.
Many people love to pay off their mortgages in advance because it gives them peace of mind. I wonder how much peace of mind they’d get if they realized what they were losing in opportunity costs. Look what you found out with a 7% car over a short time-span. Now apply that to a home that might be a tax-deductable 6% and compound that over the 30 years that most mortgages are. That kind of peace of mind can cost tens or hundreds of thousands of dollars.
From an economic perspective the cost of owning the car is depreciation, maintenance etc. and the interest cost. Neither principle repayments nor the upfront cash payment are costs. The only difference between the two scenarios then is net interest cost. Under the cash scenario your cost is 5.15% of the total price. Under the loan scenario it’s 7.0% on the outstanding loan and 5.15% on the money you have paid back minus 5.15% you are earning on the money you haven’t paid back yet.
So clearly the loan is more expensive when you think about it in this way. This is as long as you rate of return is lower than 7.0%. Things get more complicated if we bring risk into the picture
Super Saver: This is where I address the $292 payment per month: “Well, there is one flaw in the above calculation - it’s in the assumption that the entire $12,200 is available for earning interest in savings accounts. You have to realize that you are paying off the car loan (with monthly payments of about $292) from the unspent $12,200 cash. So each year, your cash reserve goes down, and so does the interest earned on it.”
I am considering the total available funds - four years from now.
The problem when posed mathematically, becomes: if you have $12,200 now, would you rather get an auto loan to buy a car worth $12,200 or pay the entire cash for it? After four years, how much cash would you have in hand with either options?
You said: “In the case where saving interest is higher, it may make sense to borrow.” - you don’t need a saving interest higher than the loan rate, since you are paying off (reducing) your loan every year. So, it seems it’s ok to borrow even if the interest rate is a couple of percentage points above your rate of return. I will run a few numbers on this over the coming weekend.
Moom: Depreciation and maintenance is the same in both the cases - whether you pay upfront or borrow the money. Also, like I said in the above paragraph, the interest rates cannot be directly compared - I think you need to calculate an “effective” rate of interest on the loan before you can compare it to the savings rate - that’s because, in the case of the savings account, the principal remains the same, whereas in the case of the loan account, you are paying off part the principal every month.
Lazy: Dave Ramsey definitely ignores leveraging concepts. You are right, that peace of mind might cost a lot when we think of bigger costs.
You made the right decision. Don’t second guess yourself.
By the way your math is wrong. You double counted the loss of interest. You can’t add it to the cost of paying cash AND subtract it from the cost of borrowing a loan. Do one or the other, not both.
5.x% in a saving account earns you maybe 4% after tax. The car loan costs 7%. No contest there. To break even with the 7% car loan, you need a return of 9-10%, which no investment can guarantee.
TFB: “You double counted the loss of interest.” - I think you are going in the right direction here.
I thought of that and tried to take it into account with this “But even if you consider the extreme scenario in which you didn’t earn any interest on the unspent cash, the total cost of the car still comes to about $14,022 - that’s still cheaper than the first option.” In this case, we are not subtracting it from the cost of borrowing a loan. And yet it’s expensive.
I suspect you are making a mathematical error when you are calculating the interest rate on the $12K, which steadily declines as you pay off the car loan.
According to Bankrate.com a 7% loan on a $12K car would have a car payment of $287.35 a month ($3448.20 a year) meaning at the end of 4 years you have paid off $13792.
If you take your $12K and multiply it by 1.0515 and then subtract $3448.2 for 4 years, you end up with -$226.67, meaning the car loan is $226 more expensive than the all-cash option.
In point of fact you would have even less since your principle is actually being depleted on a monthly basis, not an annula basis.
Another factor not mentioned are the taxes. You would have to pay income taxes at your marginal rate on the cash left in the bank. You don’t get to deduct the interest paid on a car loan.
Hit the submit button too soon. The income taxes you pay are on the 5.15% interest paid on the cash left in the bank (not on the entire balance).
I’m with Alex on this one. I did a quick excel exercise and came out with a net loss of $301.57 based on Alex’s payment estimate of $287.35 and the APR of 5.15% on the savings. My assumption is that you would withdraw the $287.35 to make the loan payment each month. In essence you end up making the 48th loan payment out of pocket.
OK, now that I read Engineer’s comment, I added in a marginal rate of 15% for income tax and came out with a bottom line of $517.96 shortage at the end of the term. Obviously your tax rate may vary significantly from the nominal rate I used.
Moom and Super Saver: After Mike’s quick number crunching, I stand corrected (thankfully - I couldn’t have lived with myself if I had ended up paying more with the cash). I think the depleting principal after I borrow from the auto loan is confusing me.
Mike: If you have your excel sheet ready, would you care to share at what loan APR the two options break even? Does it come out to be the same as the savings interest APR?
golbguru, it looks like it breaks even around 4.4%. I suspect that tracks fairly closely to the 15% assumed marginal tax rate. I should mention that in my case, I also have 9% state income tax in addition to 15% federal so I would be facing a 24% marginal rate.
The excel sheet is kind of quick and dirty, but i went ahead and posted it at http://www.kwyk.net/car_loan_example.xls
I also adjusted it to the notion that you only pay taxes once per year. I made the assumption that you would pay taxes on the 12th, 24th, 36th and 48th months of the loan.
Golbguru,
Here’s another way I thought about it.
If it cost less to borrow than using cash, we could all make money borrowing at 7%, putting it in a 5.15% savings account, and paying off the 7% loan in 48 months, even if we didn’t buy a car. We’d all be rich from this easy money
You made the right decision paying cash.
Your monthly payment would’ve been $292.14.
PMT(0.07/12,48,-12200) = 292.14
The present value of this payment stream, without considering any tax effect, is $12,648, which is exceeds your cash cost by $448.
PV(0.0515/12,48,-292.14) = 12648
If you factor in a 15% tax rate, the present value becomes $12,842, which means you lose $642 if you financed. The higher your tax rate, the more you lose had you borrowed.
PV(0.0515/12*0.85,48,-292.14) = 12842
Mike: Thanks for sharing the Excel sheet.
Super Saver: Now that you put it that way, it does sound wrong.
TFB: Thanks. It’s slowly going through my thick head.
Lazy: We will continue with the Ramsey vs. Leverage discussion when the numbers are in our favor. Right now, with our savings account, it does seem to be OK to pay cash.
I guess I am trying to cope up with the big hollow that the $12,200 has left in my pocket - it throws me into a panic, as in, “holy cow, I just spent $12,200 cash” and makes me run for the calculator. Hopefully, I will get out of it in a few more days.
Something totally different to consider regarding financing or not. I have not done the following, but have been told by a former car salesman that financing can sometimes get you a better deal on the final price because the dealership plans on profit on the “back end” of the transaction.
Scenario roughly as follows. You walk into a car dealership, and claim that if they can beat your credit union’s rate of whatever the going rate is + 1.5% or so, they will start to see $$ potential in giving you a higher than market rate loan through the dealer.
This in turn gives them additional wiggle room on purchase price, if they expect to gain $xxx in interest over the terms of the loan. Then you work on getting the purchase price as low as possible, while they are thinking they will give you an 8.0% loan in a 7.0% market.
You accept the loan, after driving down the price, then pay off the loan in the first month. Verify that there is no prepayment penalty before taking out the loan.
I’d be interested to hear if anyone has used this technique. Hypothetically applied to your recent purchase of $12,200, lets say you got a 8.5% loan but with a purchase price of $11,200, then paid it off in the first month.
BTW, the salesman ends up loosing commission on this once the lender gets its commission back from the dealer for arranging the loan.
Hoping to hear thoughts on this.
Golbguru,
Of course, car salesmen don’t want you to think “holy cow, I just spent $12,200″ They want you to think, “great, it’s only $292.14 a month.”
If everyone paid cash for their cars, the cost of all cars would be lower
First of all, why are you buying a Toyota Corolla at all? That’s a bad investment whether you pay cash or not.
But since you did buy it. I guess I would say, if your cash isn’t doing what you want and it’s the absolute best choice for you. Well done. I personally would have invested that money in something else and taken the loan if I really needed a car.
The bottom line, after correcting calculations, is that with a 7.0 % interest, you have to have a return greater than 7.0% AND have your extra money invested at greater than 100% for it to be a good deal with the loan. This is because any money you owe on it will accrue interest for every day that you owe them money. So, you would have to have it invested allt he time too.
The fact is, there is no way you can get a guaranteed 7.0% return anywhere. And, looking at investments that are good for a short time of 4 years, its too risky to play the market.
Paying it off is by far a better deal.
Note that you don’t have to take out the car loan when buying. I am sure that your local credit union or capitol one will be glad to allow you to take out a loan against your car if you really feel that paying cash was the wrong decision. You may end up with a better than 7% interest rate as well.
Kevin: “First of all, why are you buying a Toyota Corolla at all? That’s a bad investment whether you pay cash or not.” - how is Toyota Corolla a bad investment as compared to other cars? I am not just thinking reliability here, how about getting 37 miles per gallon on the highway?
Looks bland? I don’t care about that - probably suits me since I wear jeans with holes in them.
Paying cash completely takes risk out of the picture. Once the transaction is done, there are no further payments or obligations.
And, what is a $12,200 car worth in 48 months? Probably not what you paid in on the loan.
Just my thoughts.
Just a little question to throw in the mix here. Has anyone thought about the pro/con of putting some money down on the financed car vs. paying in full? For example, how would the math work out if Golbguru paid $6K on his car and financed the rest at the 7% vs. paying the full $12+K?
Also, if Golbguru had an extra $300 in his monthly budget to make car payments with, and thus his original $12+K became an emergency car payment savings account which he could put into a stock index fund at 10% (maybe), how does the math work out then? These are (to me) important things to look into because by ONLY looking at the actual cash on hand everyone seems to ignore the very real possibility that a persons current (and future) income can by itself meet their needs.
Personally, (and without doing any math on it) if I were buying a car I’d probably put the full amount into a fund and take out a loan as long as the loan was ~7%. In fact, just thinking about it right now, I would probably call up a credit card and take out a loan from them at 0% for the first year and 6.99% thereafter. I wonder how the math works in that case?
I contemplated a similar situation when buying a new car at 5% interest. I wasn’t so cash heavy, however, as I do invest in mutual funds. Selling them and incurring the tax penalty would have been pointless.
However, I was more interested in taking out the loan because I had not paid on a loan in over a decade (and my credit cards are paid in full each month). I was interested in maintaining my credit score, and the 5% cost seemed small in light of the stock market’s returns these days.
Don’t forget that proving yourself credit worthy often requires borrowing. And when it comes time for a home loan, for example, the better rates go to the higher FICO.
Seems like you are only talking a few dollars lost. What’s the Big deal?
You must be an engineer, you are good with the numbers. Paying it cash is the smart approach. You are not “under debt”
“Many people love to pay off their mortgages in advance because it gives them peace of mind. I wonder how much peace of mind they’d get if they realized what they were losing in opportunity costs”
Not all people like to invest money, My parents home is paid for. I doubt if I tell them I can make them more money by not paying off the mortgage, they will look at me crazy ! Some people rather not take the gamble.
@golbguru
let’s say you lose your job tommorrow, will you still question yourself about paying cash for the car?
Two more points:
1) If you take out a loan, the lender makes you have collision insurance. In your example, with a two-year-old car, you want collision insurance anyway, so this point is moot. But since I buy ten-year-old cars, I never want to pay for collision insurance, because the car is worth so little that even the tiniest problem is considered totalling the car and they don’t pay you much. So I always pay cash.
2) If you’re making payments, something could go wrong. You could accidentally mail one late. Even if you’re paying automatically electronically, there could still be some kind of problem. Maybe you want to change banks or there’s a computer glitch or who knows. This way, your car is totally paid off, and no kind of mistake or glitch is going to take that away from you (at least so long as you keep your receipt and/or title).
The fact that you’re feeling a little weirded out that $12,200 has just disappeared is good, because $12,200 did just disappear. At the same time, a practically new car has appeared. Hopefully that’s a big deal, too.
Moneymonk’s comment about losing your job reminded me of another point. If you had taken out that loan, you would have had more flexibility with your other money. You could spend some of it without selling your car first (though you’d eventually have to get more to keep paying off the car) whereas now you can’t.
I also paid cash for my car - more or less because the interest they charge is higher then what I get in a bank considering my tax bracket (plus high NY State tax). Once upon a time, when the interest was tax deductible (a very long time ago), I had a car loan. But after it stopped being tax deductible, I started paying cash for cars (changed a couple in 20 years or so for various reasons). I always compare with bank rates rather than stock market because you cannot be guaranteed that stocks are going to be up at exactly the time you may need the money, but you still have to make payments.
“Many people love to pay off their mortgages in advance because it gives them peace of mind. I wonder how much peace of mind they’d get if they realized what they were losing in opportunity costsâ€
Not really. As I mentioned, you still have pay your mortgage, even if you loose a job at exactly the time of stock market crash. Sure if your mortgage rate is less what you have in guaranteed accounts, it may make sense to keep the mortgage. It also depends on how secure one’s income is, and one’s age and tolerance of risk. What makes sense for 20-something doesn’t necessarily make sense for 40-something.
‘“First of all, why are you buying a Toyota Corolla at all? That’s a bad investment whether you pay cash or not.†- how is Toyota Corolla a bad investment as compared to other cars? ‘
I have the same question. I used to have a Corolla and I loved it. Now I drive Honda Civic, but I looked at both when I was buying and choose the one where the dealer gave me a better deal. These are my two preferred models though.
Incidentally, judging by how much insurance paid for my 2003 Corolla when I totalled it in 2006 - I don’t have the numbers with me, can find them later - it hasn’t lost that much value over three years (of course, I couldn’t sell it for this amount, it was more of a “suggested retail” value, but even if I could get a couple thousand less it still would be OK). Corollas are also pretty reliable from what I heard.
Geekman: “Just a little question to throw in the mix here. Has anyone thought about the pro/con of putting some money down on the financed car vs. paying in full? For example, how would the math work out if Golbguru paid $6K on his car and financed the rest at the 7% vs. paying the full $12+K?” - Instinctively, without involving math, it has to be on an intermediate ground between paying-all-cash and paying-all-loan. If paying all cash is the best option, then, whatever loan amount you borrow, your option will step a little bit down from the *best* option - the extreme case being paying-all-loan. Hope that makes sense.
Dr. D: Thought about that, but right now my FICO score is 742, so I am not much worried in that department. This loan *could* have raised it to beyond 750 (after a couple of years with regular payments), but I think I will cross that anyways in about couple of years or slightly more. Plus, I am not expecting to borrow for anything till that time, so I took this consideration out of the equation.
MoneyMonk: “let’s say you lose your job tommorrow, will you still question yourself about paying cash for the car?” - Honestly, I don’t see how that will make a difference. Once I buy a car worth $12,200 - whether I pay it upfront or get a loan, I will be in equal trouble if I lose my job. If I get a loan, then I am reserving my cash at present - which I will use to pay off the remaining loan if I lose my job.
I think I am a safe player in that department (some people even call me risk-averse), even if I had taken the loan, I would have had enough funds to cover it in times of a disaster - that is, if I lose my job or something. Things are problematic here when people borrow because they don’t have the money - I am going to steer clear of such situations as much as possible. This thinking is going to put me in trouble when I look for a house, but we will see what happens then.
So, my dilemma has been more along the lines of “is it possible that the cash that I paid upfront may have earned me greater returns if I opted for the loan instead?”
Debbie: Yeah I know what you are saying with this “At the same time, a practically new car has appeared. Hopefully that’s a big deal, too.” … Apparently, it looks like I love my money more than the new car
that’s what causing the panic.
Kitty: I agree with you on Toyota reliability and resale value. Of course, my younger brother calls Toyota “a brand for the aged” (it’s that bland at times), but even he doesn’t dispute the reliability.
I guess I commented before I knew your finances. If you have a enough cash to protect you when you get laid off. Well for the sake of leverage, you would have came out less if you financed it. Because of the leverage
Dude, yer crazy. Instead of looking at how much the car *costs* why not add up how much you can potentially *gain*.
Say you have $12,200 cash in hand.
Option 1: Take the loan and pay $292.14/mo to your debtor while investing the $12,200 at 5.15%. After 48 months, you have $14,984.18 in the bank and will have spent 14,022.92. Net gain = $961.26
Option 2: Pay cash and put $292.14/mo into a savings account at 5.15%. After 48 months you have $15,536.24 in the bank, and will have spent $12,200. Net gain = $3,336.24
Looks like a no-brainer.
Congrats on buying a Toyota. You bought one of the most reliable cars. I paid cash for my BMW and that car has broken down on me several times. Whereas my Toyota has not had 1 problem since the day I drove it off the lot.
Cash is the only way to buy a car as it forces one to only buy what one can afford. Unless you a low APR like 0.9%.
One of the benefits to financing for me in particular is a service offered by my credit union called a courtesy mortgage. Basically, the credit union will record your loan as a mortgage on your real estate, which may make the interest on your vehicle loan tax-deductible. There is only a small recording fee of $39 for the first loan, and the credit union handles all the paperwork for you.
So for a 60 month term (which I never use, always 36 months, 48 at the max), at the 7% APR you indicated, the Effective APR after the potential savings of the tax deduction can be around 5.25%, making it more competitive with paying cash. Personally, my last loan was for 36 months at 5%, with equals about a net effective APR of 3.75% or so.
I think it boils down to personal choice. Until interest rates go sky-high, I would prefer to take advantage of (reasonably) low-interest financing and a regular monthly payment rather than deplete my cash reserves. There’s a certain comfort level I have knowing that it’s available to me.
I’d rather not deal with the bank. I prefer cash. If that means I lose a few bucks, so be it. I’m dealing with my wife’s auto loan right now. Bank didn’t have correct insurance info and decided to charge us their own insurance by discretely taking it from the monthly payment and not bothering to tell us (and not even indicating it on the payment breakdown, the interest and principle payment just didn’t add up and we had to call just to find out what was happening).
I have better things to do than deal with these people and their underpaid CSRs making mistakes every day.
Cash paid: $12,200 ????
Paid by CC…CC paid in full at due date..Earn points, higher Credit score ;-))
If you are earning 5.15% on your cash you must factor in the inflation rate of around 3% which makes your cash earnings of only 2.15%, you must also factor in that same rate of inflation in reverse on the cash deal which makes your money and paying cash a more valuable option, because your money loses no value when you pay cash in fact it gains.
It’s interesting how people say they have better peace of mind by paying cash…So long as the interest rate is low, I have better peace of mind by taking a loan. If I have 15,000 in savings and use 12,000 of that to buy a car, that leaves me with $3,000 in savings. I’d rather have the 15,000 there…what if I were to lose my job? If you’re disciplined and always make sure you can pay 100 percent of your debts (except your mortgages), you never have to worry about not being able to meet your payments, so really there is more piece of mind by borrowing.
To the poster that said an if you could make money on a 7% loan then everyone would be out there making loans just to get rich…you’re forgetting this is a secured loan. A bank won’t give you a 7% loan unless you’ve got an asset to back it up. I have a 2% student loan…you can’t tell me I can’t make money on that one…but not everyone can go out and get a student loan.
About two years ago, my wife and I ruined our finances by creating a restaurant. I truly understand the crushing weight of debt. Shortly after this, my wife lost her professional job out of the blue. After two years of struggling we have just begun to recover by re-entering our professions.
If we would have remained in our fields we would have been fine, but in that unfulfilled way. We know now that anything can happen and not having money to pay bills is beyond scary. It is living with your parents for two months when you are over 30 scary. Everything bad that could happen except for illness did happen.
Although, personally, I would not have paid that much cash for a used car, it was an excellent decision.
While our combined salaries now put us in that top 20 percent of wage earners, we owe a lot of money.
Before our business, we were credit and credit card free, except for school loans. We are trying to reach that level again, minus the school loans….
Cash is almost always better. Living well below your means is beyond awesome.
As Redd Foxx said, “I bet I can enjoy my nickel better than you can enjoy your dime.
Hi,
I haven’t seen anyone mention Insurance. When you pay for a car in cash in full you can reduce your insurance coverage to just liability. This can often provide savings beyond the interest, provided you’re willing to take a risk betting on your driving ability. I’m confident in my driving ability and don’t feel I’ll be at fault were an accident to occur. Even if it were to occur, I can afford to buy another car outright so the risk makes financial sense for me.
The logic is pretty simple here i guess. If the lender(bank) could have made more money on savings, instead of of lending it out they would have effectively done that without lending money on collateral that depreciates.
So making a cash purchase here makes sense to me.
Also the interest rates are always on mercy of the great feds
Interest lost on cash withdrawn from account (48 months @ 5.15% APR)
Interest lost on Loan for car instead of cash (48 months @ 7.0% APR)
All remaining equal it is a no brainer:
Interest Lost on Loan (48 months @ 1.85%APR)
Also as Engineer said, you must pay taxes on interest from cash remaining in the bank.
One more thing with the cash option happens, the first of the month is like the middle of the month, no worries. Also, you will truly earn the right to put a bumper sticker that says: don’t laugh it’s paid for.
Cash talks and credit walks. Save and buy cash.
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