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Financing vs. paying cash shuttle bus
#1
I'm on the fence of whether I should finance a newer model used low mileage shuttle bus to do my build or getting an older one that I can pay cash for but has alot higher mileage. I can afford both ways. Seeing as I will be keeping the bus as my home for life and I have no S&B ,any other vehicles financed, and good credit. I am at a cross roads. If I financed one then I could use my cash I have saved for the build and could be out of this TT in a short period of time. But I hate borrowing money. If things go south with work etc then in reality my "home" could get repossessed.  Any and all opinions welcomed. Thank you ! David
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#2
(03-19-2018, 09:44 AM)RepublicOfTXPatriot Wrote: I'm on the fence of whether I should finance a newer model used low mileage shuttle bus to do my build or getting an older one that I can pay cash for but has alot higher mileage. I can afford both ways. Seeing as I will be keeping the bus as my home for life and I have no S&B ,any other vehicles financed, and good credit. I am at a cross roads. If I financed one then I could use my cash I have saved for the build and could be out of this TT in a short period of time. But I hate borrowing money. If things go south with work etc then in reality my "home" could get repossessed.  Any and all opinions welcomed. Thank you ! David


First off I looked at shuttle busses and found one site selling brand new ones at what seemed cheap prices to me- like $40k.

One thing to consider if you go the financing route is to finance it for a long time. Looks like my financing will be %4-6.... and since that’s below the rate of real inflation, I will borrow money at that rate all day long.

So maybe consider a very long note, like ten years. 7 is common these days for vehicle loans.
Then take half of your cash savings and have it as a buffer to make payments from. Figure if you think it will take 3 months to find a new job, then 12 months of payments in the bank gives you a lot of breathing room.

And then do the most critical parts of the conversion out of the remaining cash... and finish it up over time as your income comes in.

That way you can sorta have your cake and eat it too.


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