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What’s the alternative to paying cash for a car? Borrowing to buy it (more expensive), leasing it (usually more expensive), or taking Uber everywhere (way more
by NotYourLawyer 3y ago
What’s the alternative to paying cash for a car? Borrowing to buy it (more expensive), leasing it (usually more expensive), or taking Uber everywhere (way more expensive).
- ptmcc 3y agoFor a long time it was common to get manufacturer-subsidized 0-1% financing on new cars. Then supply chain stuff exploded and rates went up but it'll come around again eventually.
- jonas21 3y agoTransit/biking/walking? Or if that's not feasible where you live, having only one car per household instead of 2+.
- tiedieconderoga 3y agoBorrowing to buy it isn't necessarily more expensive. You could pay $50k for an average new car, or $10K + $40K over 5 years at 5% (~$5k extra in interest) If you put that $40k into the stock market, average annual returns for the S&P500 are ~10% going back to 1928, so you would have made ~$24k over 5 years on average. That would put you ~$19k ahead after you pay off the loan with interest. You could certainly buy at the wrong time and lose out by taking a loan. There are plenty of +/-30-40% years in those "average" stock market metrics. But historically it's been a pretty good bet if you're a gambling sort.
- NotYourLawyer 3y ago>I’ll just take out a 5% loan to speculate on the stock market Ok.