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It depends. It doesn’t make sense to not get a car you can afford for 0% interest. I could have outright paid for my current vehicle but over the 3 years at 0%
by dyauspitr 1y ago
It depends. It doesn’t make sense to not get a car you can afford for 0% interest. I could have outright paid for my current vehicle but over the 3 years at 0% interest I earn 6% to make a few thousand over the lifetime of the loan.
- namdnay 1y ago> It doesn’t make sense to not get a car you can afford for 0% interest. The loan might be 0% interest, but you're still using that loan to pay way too much money for a depreciating asset.
- tshaddox 1y agoI assume the comment you quoted means “a car you could afford to pay cash for, but will instead invent the total cost while making payments on the 0% interest loan.”
- namdnay 1y agoI think the problem here is "you can afford" vs "you can pay for" if you're willing to spend the time and effort doing interest rate arbitrage for a few hundred dollars, maybe you can pay for a certain car, but i'm really not sure you should be
- dyauspitr 1y agoIt’s more than a few hundred. On my current vehicle- $60k, 0% interest for 72 months I make $10,000 over the lifetime of the loan at 6%.