Quote:
Originally Posted by eikond
I paid invoice.. plus the dealer's $250 paperwork fee..
I have a question.. Why would anyone pay for the car in full or even put any money down when they can get 1.49% financing. Surely you can find better uses for your money.. . I'll borrow as much money as they will give me at 1.49%.. it's less than inflation. 1.49% on $30k is like $37 in interest per month...
Now.. back when rates were 6-7% for a normal car loan.. I could see wanting to avoid the interest.. but now??
oh well.. whatever..
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Unless you have an investment option that gives more than the 1.49%, it won't do you any good. And any investment under the rate of inflation is actually not an investment but more of a "cutting losses" scenario.
I'd already saved up more than 30k over a few years to buy this car. But even in a high yield savings account I was only getting about 1.1%, and I didn't want it in a longer term investment as I wasn't sure of the timing on actually buying the car, 2-4 years? Who knew at the time.
So if I did a 1.49% loan on top of that, I'd break even so to speak against inflation, paying it all off right now does save me some money. That $30 a month will now go back into my IRA for example which does have a greater than inflation return.
Then the wife decides to buy a mustang and my carefully planned finances go to shit...such is life.