- Joined
- Jul 23, 2020
- Threads
- 8
- Messages
- 475
- Reaction score
- 878
- Location
- Little Rock, AR
- Vehicle(s)
- 2019 F150 Raptor
- Your Bronco Model
- Badlands
Traded in my paid for Raptor - dealership wrote me a check after the deal was done.
Sponsored
JFC guy.That's 7.12% of interest on $10k you're throwing down the drain because you'd rather not pay 1.49%. I'm not claiming to be smarter, I'm just questioning your thinking. It's perfectly acceptable to say paying cash and not worrying about anything else is easier than trying to maximize your money.
That's a straight up lie. They want you to finance because that's how F&I managers and the dealership make money. lolI wanted to pay cash, but my dealer said I wasn't "allowed" to do that here in Canada because it'll be flagged for money laundering....
I'm thoroughly impressed. You clearly understand numbers, but think the opportunity cost of not having $40,000 to $60,000 available is less than $1156 (the cost of a 1.49% loan spread over 36 months). My friend, if you can't make $1156 on $40-60k in 3 years then we will never come to agreement. But what we can mutually agree to is you should definitely stick to paying cash.JFC guy.
7.12% x 10,000 = $712.
Less 3 months of interest because of taking it out before 5 years (75% * $712) = $534
Less 15% short term capital gains on $534 ($534 * .85 = $453.90)
Less the $149 I paid in interest for 1 year on $10,000 loan ($453.90 - $150 = $303.90)
Less than 2% origination fee for my loan (2% x $46k) = $92 ($303.90 - $92.00)
So for all my hassle I am going to make $211.90 on my 10k in 12 months.
I probably made more money doing that math for you than I will putting it in the treasury bond.
I think what we can agree on is that you should not come in here dick swinging like you are more intelligent than everyone else.I'm thoroughly impressed. You clearly understand numbers, but think the opportunity cost of not having $40,000 to $60,000 available is less than $1156 (the cost of a 1.49% loan spread over 36 months). My friend, if you can't make $1156 on $40-60k in 3 years then we will never come to agreement. But what we can mutually agree to is you should definitely stick to paying cash.
The reason I can pay cash for my bronco, is because of not paying cash for things like a bronco lol. Super ironic. Carry on my man.I think what we can agree on is that you should not come in here dick swinging like you are more intelligent than everyone else.
I'm sorry it bugs you I can pay cash for my Bronco.
I know this wasn't the question but what about leasing? Is leasing not an option in the US?I saw a thread earlier today with people comparing interest rates and it had quite a few members active in the conversation. I also had read an article talking about a high number of bronco owners paid cash. Curious what the percentage really is......
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Just out of curiosity, why are you comparing it with the assumption you'd cash out your bond at 12 months? Did you pay your loan off at the 1 yr mark?JFC guy.
7.12% x 10,000 = $712.
Less 3 months of interest because of taking it out before 5 years (75% * $712) = $534
Less 15% short term capital gains on $534 ($534 * .85 = $453.90)
Less the $149 I paid in interest for 1 year on $10,000 loan ($453.90 - $150 = $303.90)
Less than 2% origination fee for my loan (2% x $46k) = $92 ($303.90 - $92.00)
So for all my hassle I am going to make $211.90 on my 10k in 12 months.
I probably made more money doing that math for you than I will putting it in the treasury bond.