Quote:
Originally Posted by Dadhawk
Or, you could spend the $25K now, save the interest over the two years, and dollar cost average what would have been the car payment into an investment and end up in relatively the same place, or better depending on market conditions, without the risk (and yes, there is one) of carrying a loan.
Also, on the investments in your example you are leaving out the taxes you would need to pay to realize your gain.
We've gone around this many times on the forums here. It's a polarizing issue (almost as much as AT vs MT). In the end, the OP just has to decide how they prefer to handle their money.
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There are a lot of variables... too many to go through on here. The realized gains on those numbers above would likely be higher than the 5% if you were smart about your investment, and the tax rate is so low on capital gains that even with the taxes added on to it, it doesn't make a material difference in the calculation. 15% of the gain is at most on any of those ~1000.
Also 1900 + any interest is over 12* lower than 25000 + any interest.