It's a shame that we can backtrack on what we say but here is my attempt to...
Once upon a time I thought financing a car was out of question. I thought it was best (if you had the cash on hand) to pay cash
especially for a depreciating asset such as a car. However you need to look at the
bigger picture and arbitrage interest rate... In other words what could
you have done with that money and turned it at a higher rate than the
car loan was.
1.99% car loan < 4-6% stocks < 10%+ alternative investments
A car loan is cheap free money... The take away is there is no clear cut answer. It all depends on comparing the intrest rate and playing the arbitrage game. WMD: This is not a free pass to buy an expensive car that you would have bought otherwise.
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