FuzzyRev
Well-Known Member
You beat me to it. Same opinion here; why dump all that cash on the car when I can finance $35k at 1.8%?I did not, because easily could have. This comes up occasionally, so I always say this. Taking a low interest loan against assets (even depreciating ones) is preferable to your financial profile than spending cash on an (especially depreciating) asset. I always, always, always get nice long low interest loans for larger purchases, and keep the rest invested somewhere safeish. I have a good portfolio of art, land, and bunch in the markets. Even though they're down significantly now, they'll recover. Pulling money early results in fees/taxes/etc.
2% car loan or lose out on the 60k at 12% or whatever art/real estate/markets are doing.
or just pay cash, whatever.
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