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$$ question - what would BT do?
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 2013-02-05 12:32 PM |
 Subject: $$ question - what would BT do?Bought a car recently at 0% financing. I had the cash to buy it, but set up a separate savings account and just have the payment automatically deducted, don't even think about it. I do not want to risk the money, is there anything that I can do with the cash while it's sitting there? Anything worth the hassle? It's not a fortune, but it's a good little chunk. |
| 2013-02-05 12:44 PM in reply to: #4609609 |
Champion  18680       Lost in the Luminiferous Aether | Subject: RE: $$ question - what would BT do? ChrisM - 2013-02-05 1:32 PM Bought a car recently at 0% financing. I had the cash to buy it, but set up a separate savings account and just have the payment automatically deducted, don't even think about it. I do not want to risk the money, is there anything that I can do with the cash while it's sitting there? Anything worth the hassle? It's not a fortune, but it's a good little chunk. You can do laddered maturity CDs. That would probably be one of the safest bets but will still not yield much in return. |
| 2013-02-05 12:54 PM in reply to: #4609609 |
Champion 5117 Brandon, MS | Subject: RE: $$ question - what would BT do? There's no liquid accounts that I know of that would give you a return worth the trouble of setting it up. I've actually got a 2.5% checking through Kasasa at a local credit union, with a 0.5% savings account piggy backed on it. I've got to have 10 non pin transactions on a debit card, get online statements, and have an ACH clear each month. If you could put all your liquid money into a checking account like that, it might be worth it. But to just set up an account with your car money, all that isn't worth it. My advice is to convince yourself that 0% interest paid is the same as earning 2%. Liquid funds just don't earn anything right now. |
| 2013-02-05 1:00 PM in reply to: #4609630 |
Sensei Sin City | Subject: RE: $$ question - what would BT do? trinnas - 2013-02-05 10:44 AM ChrisM - 2013-02-05 1:32 PM Bought a car recently at 0% financing. I had the cash to buy it, but set up a separate savings account and just have the payment automatically deducted, don't even think about it. I do not want to risk the money, is there anything that I can do with the cash while it's sitting there? Anything worth the hassle? It's not a fortune, but it's a good little chunk. You can do laddered maturity CDs. That would probably be one of the safest bets but will still not yield much in return. That was my first idea. Set up portions to mature at 6 months, 12 months, etc. It will free up when it's needed. |
| 2013-02-05 1:09 PM in reply to: #4609609 |
Veteran 348 Houston, TX | Subject: RE: $$ question - what would BT do? Look at the TIP etf. It is safe and will return hogher than what a CD will |
| 2013-02-05 1:21 PM in reply to: #4609650 |
Resident Curmudgeon 25290 The Road Back Gold member | Subject: RE: $$ question - what would BT do? sesh - 2013-02-05 12:54 PM Disagree. As an example, Ally Bank money market accounts pay .9% right now; $15k parked there for a year earns $135, which is better that a poke in the eye. Like every thing else, each individual is going to have to determine their own "worth it" point.There's no liquid accounts that I know of that would give you a return worth the trouble of setting it up. I've actually got a 2.5% checking through Kasasa at a local credit union, with a 0.5% savings account piggy backed on it. I've got to have 10 non pin transactions on a debit card, get online statements, and have an ACH clear each month. If you could put all your liquid money into a checking account like that, it might be worth it. But to just set up an account with your car money, all that isn't worth it. My advice is to convince yourself that 0% interest paid is the same as earning 2%. Liquid funds just don't earn anything right now. |
| 2013-02-05 1:23 PM in reply to: #4609609 |
Pro 6838 Tejas | Subject: RE: $$ question - what would BT do? How much would you save paying it off and dropping collision coverage? |
| 2013-02-05 1:23 PM in reply to: #4609630 |
| Master 2083 Houston, TX | Subject: RE: $$ question - what would BT do? trinnas - 2013-02-05 12:44 PM You can do laddered maturity CDs. That would probably be one of the safest bets but will still not yield much in return. this was my first thought too. |
| 2013-02-05 1:26 PM in reply to: #4609609 |
Master 4101 Denver | Subject: RE: $$ question - what would BT do? Frozen Concentrated Orange Juice futures. I have an inside tip that this years crop will be low... |
| 2013-02-05 1:41 PM in reply to: #4609699 |
Champion 8766 Evergreen, Colorado | Subject: RE: $$ question - what would BT do? the bear - 2013-02-05 1:21 PM \sesh - 2013-02-05 12:54 PM Disagree. As an example, Ally Bank money market accounts pay .9% right now; $15k parked there for a year earns $135, which is better that a poke in the eye. Like every thing else, each individual is going to have to determine their own "worth it" point.There's no liquid accounts that I know of that would give you a return worth the trouble of setting it up. I've actually got a 2.5% checking through Kasasa at a local credit union, with a 0.5% savings account piggy backed on it. I've got to have 10 non pin transactions on a debit card, get online statements, and have an ACH clear each month. If you could put all your liquid money into a checking account like that, it might be worth it. But to just set up an account with your car money, all that isn't worth it. My advice is to convince yourself that 0% interest paid is the same as earning 2%. Liquid funds just don't earn anything right now. Yeah, I would think that is about the best you could do. Capital One 360 (formerly ING Direct) has a 0.75% APY on their savings account right now...slightly higher if you have more than $15k in checking. Probably not worth much more hassle than that though. I got a special offer from Chase in the mail the other day that if I started a checking account they would throw me $150 bonus...several ways to keep the account free including keeping a $1500 balance. Then you had to keep the account at least 6 months. If I had $1500 to leave alone for 6 months I would TOTALLY have done that...I just didn't have the cash. |
Making $150 on a six month $1500 "investment" would be worth it to me....| 2013-02-05 3:47 PM in reply to: #4609609 |
Extreme Veteran 394 North Vancouver, British Columbia | Subject: RE: $$ question - what would BT do? You could have offered the car company a cash deal for 5% more off the price. They probably would have preferred that to 0 percent financing. |
| 2013-02-05 4:18 PM in reply to: #4609705 |
Master 1439 Calgary, AB Silver member | Subject: RE: $$ question - what would BT do? mdg2003 - 2013-02-05 12:23 PM How much would you save paying it off and dropping collision coverage? That is almost never worth it - even with <3000 dollar beaters. |
| 2013-02-05 4:22 PM in reply to: #4610011 |
Veteran 1097 Elizabethtown, KY | Subject: RE: $$ question - what would BT do? airborne - 2013-02-05 4:47 PM You could have offered the car company a cash deal for 5% more off the price. They probably would have preferred that to 0 percent financing. Doubt the car company would take a chance on eroding its margin and giving up late fee potential. |
| 2013-02-05 4:25 PM in reply to: #4609609 |
Elite 4435 | Subject: RE: $$ question - what would BT do? Don't know how the mortgage system works in the states but here in Australia any spare cash I put into the mortgage saves interest daily while it's in there, redraw when I need it. I''m currently saving $100 a month with surplus cash in there. |
| 2013-02-05 5:17 PM in reply to: #4609712 |
Expert 2180 Boise, Idaho | Subject: RE: $$ question - what would BT do? drewb8 - 2013-02-05 12:26 PM Frozen Concentrated Orange Juice futures. I have an inside tip that this years crop will be low... Am I the only one who gets this......Mortimer? |
| 2013-02-05 5:20 PM in reply to: #4609712 |
Pro 4838 | Subject: RE: $$ question - what would BT do? drewb8 - 2013-02-05 1:26 PM Frozen Concentrated Orange Juice futures. I have an inside tip that this years crop will be low... Nice. |
| 2013-02-05 5:58 PM in reply to: #4610154 |
Elite 3770 | Subject: RE: $$ question - what would BT do? jeffnboise - 2013-02-05 5:17 PM That's the only line I understood in this entire thread. What's extra cash??PORK BELLIES!drewb8 - 2013-02-05 12:26 PM Frozen Concentrated Orange Juice futures. I have an inside tip that this years crop will be low... Am I the only one who gets this......Mortimer? |
| 2013-02-05 6:54 PM in reply to: #4609712 |
Sensei Sin City | Subject: RE: $$ question - what would BT do? drewb8 - 2013-02-05 11:26 AM Frozen Concentrated Orange Juice futures. I have an inside tip that this years crop will be low... Mr Beaks? |
| 2013-02-06 7:59 AM in reply to: #4609705 |
Elite 3060 N Carolina | Subject: RE: $$ question - what would BT do? mdg2003 - 2013-02-05 2:23 PM How much would you save paying it off and dropping collision coverage? Terrible idea.......... |
| 2013-02-06 8:04 AM in reply to: #4609609 |
Champion 14571 the alamo city, Texas | Subject: RE: $$ question - what would BT do? ChrisM - 2013-02-05 1:32 PM Bought a car recently at 0% financing. I had the cash to buy it, but set up a separate savings account and just have the payment automatically deducted, don't even think about it. I do not want to risk the money, is there anything that I can do with the cash while it's sitting there? Anything worth the hassle? It's not a fortune, but it's a good little chunk. MAKE IT RAINNNNNN |
| 2013-02-06 9:01 AM in reply to: #4609609 |
Master 2802 Minnetonka, Minnesota | Subject: RE: $$ question - what would BT do? Why setup a separate savings account and forward load it with $ when earnings on liquid assets is virtually nothing? The reason to take advantage of the 0% financing versus paying cash is to invest the money. The last 4 new cars I purchased were all financed at 0 to .9% interest rate. I used normal cash flow to make the monthly payments and kept the $40,000 or so invested in my overall portfolio earning 6% or whatever. |
| 2013-02-06 10:16 AM in reply to: #4610739 |
Resident Curmudgeon 25290 The Road Back Gold member | Subject: RE: $$ question - what would BT do? japarker24 - 2013-02-06 7:59 AM x2. Collision coverage protects more than just the lender.mdg2003 - 2013-02-05 2:23 PM How much would you save paying it off and dropping collision coverage? Terrible idea.......... |
| 2013-02-06 11:59 AM in reply to: #4610859 |
| Subject: RE: $$ question - what would BT do? ejshowers - 2013-02-06 7:01 AM Why setup a separate savings account and forward load it with $ when earnings on liquid assets is virtually nothing? The reason to take advantage of the 0% financing versus paying cash is to invest the money. The last 4 new cars I purchased were all financed at 0 to .9% interest rate. I used normal cash flow to make the monthly payments and kept the $40,000 or so invested in my overall portfolio earning 6% or whatever. Well.......that's what I am asking here, isn't it? |
| 2013-02-06 11:59 AM in reply to: #4611026 |
| Subject: RE: $$ question - what would BT do? the bear - 2013-02-06 8:16 AM japarker24 - 2013-02-06 7:59 AM x2. Collision coverage protects more than just the lender.mdg2003 - 2013-02-05 2:23 PM How much would you save paying it off and dropping collision coverage? Terrible idea.......... Yes. it protects me from having to buy a new car LOL. I would never do that |
| 2013-02-06 12:00 PM in reply to: #4610011 |
| Subject: RE: $$ question - what would BT do? airborne - 2013-02-05 1:47 PM You could have offered the car company a cash deal for 5% more off the price. They probably would have preferred that to 0 percent financing. So your idea is to invent a time travel machine, travel back through time and space and renegotiate the sale? Let me think about that one...... |
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