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At a 2.49%-3.84% interest rate? [1] YES. Hell yes. That's better-than-free money, adjusting for inflation. If you haven't maxed out your I-bond purchases yet,
by fennecfoxen 5y ago
At a 2.49%-3.84% interest rate? [1]
YES. Hell yes. That's better-than-free money, adjusting for inflation. If you haven't maxed out your I-bond purchases yet, you can get 7.12% basically risk-free.
[1] https://www.bankrate.com/loans/auto-loans/rates/ https://www.bankrate.com/loans/auto-loans/rates/
- alistairSH 5y ago2.49% is high for a loan through the dealer. My BMW loan is 0.9% and my Honda loan is 1.9%.
- fennecfoxen 5y agoEven better!
- Kirby64 5y agoIt's only high if the dealership isn't offering incentives in some way. That 0.9% APR is because BMW (or the dealership) is subsidizing it in kickbacks. Not every dealership/brand does that.
- JumpCrisscross 5y ago> If you haven't maxed out your I-bond purchases yet, you can get 7.12% basically risk-free Those are being issued at 0% real. The initial rate is 7.12%, but that figure fluctuates with CPI-U. Betting that American inflation will keep raging at 2.5%+ isn’t a terrific bet. That said, your broader point is valid. Money at 2.5% should not be paid back. There are good bonds yielding more, to saying nothing of dividend-paying stocks.