How many Prius owners paid cash vs loan for their car?

[Michgal007]

I got a loan from my credit union for 5.25%. Being a graduate student... the car costs more than my yearly stipend

[galaxee]

yeah... me too michgal... me too...

[earthfan312]

We would have paid cash for ours, but since we are small business owners we decided to go the financing route, because we got a great interest rate on a small business loan, AND it's an EXTRA tax write-off. It seems win-win, even though, yes, we are paying interest (not much, 5%), we are helping our small business credit, which is in dire need of some help right now (as are most, aren't they?). So the benefit is four-fold, we get to help the planet and drive a PRIUS (!!!), we helped our business credit, we get a business tax write-of, and we get a local tax write-off. DEFINITELY worth it for us, but not everyone is able to take that route.

[andyprius]

Originally Posted by Loveit

I have only bought one brand new car in my life and paid cash for it. (Back in 1977.) Now I am saving again for my next brand new car: the Prius. This next car will probably be my last car, if I don't have any smash ups! If I save to pay all cash for it, it may take about a year and a half. Should I pay all cash for it or go the loan route? If I go the loan route, does anyone have any good suggestions or helpful tips/ideas?

I have paid cash since 1966, as far as the loan rate, look at the overall lowest payback. Take your time, let each financier know what the cheapest or best offer was OR compare rates on line, but then you don't know the total picture. Above all , dicker with them. Your leverage is time.

[andyprius]

Originally Posted by galaxee

<div class='quotetop'>QUOTE(qbee42 @ Oct 15 2006, 12:57 PM) [snapback]333007[/snapback]</div>

and that, i think, is the reason so many here paid cash. i bet there's a correlation. those of us who just set up house, have student loans, startup career expenses, are still in school or are just getting a career up and going... we're in the minority here. and we're the ones that don't have $25k in the bank and have to take out loans.

there is a way to take out a loan and do it intelligently. in the last year times were decent, we were diligent, and now we're substantially ahead on our car payment. we made sure we will not be penalized for paying off early- so all we're doing is putting less toward interest and more toward principal. we've got a busy season where the money is better, and a slow season when the budget is tighter. during the busy season we crank out payments if we don't have other stuff to worry about. during the slow season or rough times it's back to the regular payment.

even an extra $50/month helps. the smart way to do a loan is to pay off faster than they anticipate, and make sure you won't be penalized for doing so.

All Good Points

[aaf709]

I paid cash.

[moxiequz]

I financed my Prius but with the 0% interest loan Toyota was offering at the time. I did however have enough money in the bank to cover the entire cost of the car OTD.

[fthorn]

I wrote a personal check. Not cash, exactly. But near the same.

[mingoglia]

Holy old thread Batman!