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If you have the cash and can invest it better (net taxes and fees) than what the cost of the loan is, why not? If you are fortunate enough to qualify for a ver
by DoubleCribble 8y ago
If you have the cash and can invest it better (net taxes and fees) than what the cost of the loan is, why not? If you are fortunate enough to qualify for a very low interest loan (usually on a new car), even a very reasonable growth rate on your investments can be sufficient to effectively pay for a couple car payments on the loan each year.
- tomohawk 8y agoLets say you own a car 100%. Would you say it is wise to take out a loan on that car to play the stock market? That's the same thing as what your are saying. What if the market goes south? What if your lose your job? Debt represents risk that makes all of these other setbacks worse. It's better to get that off your back, then invest. If you have car debt, you should first pay that off, then play the stock market with your surplus money.
- DoubleCribble 8y agoHonestly, that depends on the interest rate spread. If I could get the same terms as a new car (let's say 1.9% on 60 months) during a boom economy/post-crash correction, I just might. Of course, you're never going to see that rate offered on a re-fi for a used car so this is purely hypothetical but as the saying goes, fortune favors the bold.