3 ms·

There's a critical piece missing to the above comment: who can predict the returns in the future from investments? The investing market is massively inflated cu

There's a critical piece missing to the above comment: who can predict the returns in the future from investments? The investing market is massively inflated currently, what if it crashes? Remember the person giving you a loan is making money on it as an investment of their own. They have all the same options you do (and often way more knowledge of investments), but they do this anyways. I would recommend avoiding an auto loan if you can.

jqpabc123 5y ago
...who can predict the returns in the future from investments? Low risk investments are available. For example, high quality corporate bonds. But there's a critical piece missing to the above comment: who can predict the value of the car in the future? Cars are a depreciating asset with significant value losses and other associated costs. Thus paying cash for one involves risk too. Assume a 10-20% loss almost immediately. And if the owner should die in the near future, the need for the car will be negated and significant additional cash value may be lost for his estate/heirs. The point being --- anything is possible either way. Risk is ever present and requires a personal judgment.