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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As I stated earlier in the other thread, I totally understand this logic. However I personally place a high value on security, since I have sole financial responsibility for my wife and family, and so my goal has been to eliminate all forms of payments, including car, house, and college tuition for my kids, and to that end i have been fortunate to reach those goals so that all that I am left to deal with is gas, food, utilities, college books/room and board for my kids, etc.
Again, I'm not disagreeing with your logic, because it is very sound.
Personally, knowing that my family will not have any real debt in case something happens to me, or I lose my job, or the economy takes another tail spin, etc is just high on my priority list.
I fully realize that this security is indeed costing me some extra money, but it helps me sleep at night.