Quote:
Originally Posted by tranzformer
I keep my car for a long time as well. Current car is +10 years. But I will take advantage of interest rates and free cash. I'd rather have the banks get hit with the inflation. Plus makes me more liquid.
Take the $25-30k you would pay for the car. Get a 1.99% loan for 4 years. You already have the money to pay the loan off outright. Then pay the monthly loan while you invest or leave the money in a CD/high yield savings account. Gives you money to use incase a family member gets sick, house needs a new roof, water heater breaks...etc. Why leave $25-30K tied up in a car that is depreciating? Not to mention inflation.
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I'm not in a position to buy the car outright, but if I were, and had that kind of cash lying around, I'd be doing the exact same thing you are.