Quote:
Originally Posted by 86fanatic
To expand, you can get a 5 year CD with 1.8% interest. If you can land a car loan for less then 1.8%, which is very possible in today's environment with good credit, you are throwing money away by using cash to buy:
http://www.bankrate.com/funnel/cd-in....aspx?prods=19 |
it needs to be less enough to account for income tax rate, not just less. To see the entire picture you have to take that into account.
Also I don't really consider paying someone interest is using their money as some have said. Its the same with mortgages and folks that say you should have one to reduce taxes. I don't care about taxes I care about cost. Giving the bank a dollar to. save giving the government 30 cents is short sighted. I'll give the 30 cents instead anytime and keep the extra 70 cents.
In the end you aren't dumb or crazy for paying cash or taking out a loan as long as neither puts you in harms way. I prefer cash, you prefer loans, its all good.