Quote:
Originally Posted by kilrb
Question: Why would you borrow $25,000 at 2.9% so that you can buy a CD at 1.25%? If your answer is liquidity, I can understand. If you are saying you're getting ahead by borrowing at a higher rate than the rate of return you can get on your cash, I'm interested in hearing the logic...
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First tell me where you can get a cd rate that high haha. i think in order to do that and still have the possibility of it being liquid would be to strecth it out about 5 years through a broker dealer.
I agree though, I would rather finance a car for below what the average inflation price is and sit on my cash (invest it) versus paying cash for it. The value of a dollar folds over time and so you would be paying less in the long run.