^^^ no doubt. What mutual funds is Dave talking about??I sure wish my 401k was earning 12% these days! FWIW - I'm from the pay the car off and keep it school.
Put in my reality of 1.9% car loan and a -6% investment return and suddenly I'm a genius.Put in the reality of a 5% car loan and a 5% investment return (both of those can be had without any problems) and things will still work out in your favor, just not as much and not as quickly.
Yeah, you don't wanna check the 401k too much these days... Mine has dropped 8.5% in the first quarter. But, hey, a 401k is a long-term investment. Despite some wild fluctuations, over the long term, it has done quite well.I sure wish my 401k was earning 12% these days! FWIW - I'm from the pay the car off and keep it school.
EDIT: Just checked my 401k - my return for this quarter is currently -6.35%. Great!
Unless the assets are in a tax deferred retirement account.Actually if you took out a 1.9% car loan and invested the cash in assets that lost 6% you're not much of a genius. You could have paid cash, not paid the 1.9% interest, and not lost the 6% in capital.
Rich, the car depreciates at the same rate whether it was bought with cash or a loan.
It's sad but a lot of people with bad credit pay well over 9%. Hell I know some paying upwards of 15%. I don't think Lotus owners are this guys target audience. He's being a bit optimistic but his idea is somewhat sound.The last car I financed was @ 1.9%. I've lost well over 1.9% on my investements over the past few quarters. Seems like a pretty good investment. Financing a car at 9+% (his example) is ridiculous.