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@itsreedgraff·November 3, 2026·1.2K views

Should you buy in cash? Pt.2 Because the first one kind of sucked.

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What if you could drive a $30,000 car for 8 years for only 4 grand? When you buy a car, you pay in cash or you can finance. And according to the internet, the choice is pretty obvious.

Right? Every finance guy says pay cash to avoid paying interest, which isn't bad advice, but there are ways to use your money smarter. Buy a $30,000 car in cash and the second you drive it off the lot, it drops 10% to $27,000.

By year six, it's worth about $18,000 and by year eight, just $16,000. You avoided interest, sure, but you locked $30,000 into a sinking asset and lost $14,000 in value. 9%.

Instead of handing the dealer $30,000, you park that cash in the stock market earning 8% and pull the $428 per month payment straight from that account. Month one, your investment beats out the loan interest by $171. By year six, the loan hit zero and you still have $8,500 left over by the market.

Put that back on the graph. For six straight years, your investment growth cancel out the car's appreciation. After 8 years, your net worth is $26,000 instead of $16,000 making you $10,000 richer than the guy who paid in cash.

But how do dealers actually structure these rates? Subscribe so you don't miss it.

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Why do manufacturers give away cars?

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How Does Dealership-Based Financing Work?

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When should you trade in your vehicle?

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Recording audio when at a dealership be like.

And this have been on the lot for more than 200 days, so we're willing to make a deal and get these off the lot.

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