Financing $50k for 6 years @ 2% you will pay about $3k in interest. Keeping your $50k and investing it @ a modest 6% for 6 years you will make about $20k in interest.
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15% wouldn't be a surprise depending on where its at, mines at 8.3% . Its decentralized finance in the crypto world.I assume you mean 1.5%. What is DEFI?
Did you live through '08, your 50K turned into 25K real quickly. It came back but it wasn't overnight. If you needed that 50K in '09 you were screwed as it was only 25K. You have to factor in risk.Financing $50k for 6 years @ 2% you will pay about $3k in interest. Keeping your $50k and investing it @ a modest 6% for 6 years you will make about $20k in interest.
This is always an interesting discussion, so many people at so many different points in their lives.I still believe the math will almost always show taking a low interest loan for as long as possible and keeping your cash, investing somewhere else, etc. is the better financial move.
If the spouse loses their job you still have the cash because you didn’t put it all into buying a car for cash. If you want to ride off into the sunset in your Badlands, you can do that and keep your money working for you, not all in your Bronco. Most successful investors in real estate, etc will always keep their money and use low Interest financing to make more money. Would you buy a $500k house in cash with 2% interest rates?
With that said, I’m about to pay off a 6 year low interest car loan in less than 2 years so I didn’t even follow my own financial beliefs lol. Why did I do it? Emotion not math. Looking to get my Bronco and didn’t want two car payments. I don’t want the FEELING of two car payments even though by keeping the cash you will always have the money.
Financing one (mine). Paying cash for my dad's surprise Bronco.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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Good for you! Incredible generosityFinancing one (mine). Paying cash for my dad's surprise Bronco.
...And remember at 6% interest..your money doubles every 12 years..Financing $50k for 6 years @ 2% you will pay about $3k in interest. Keeping your $50k and investing it @ a modest 6% for 6 years you will make about $20k in interest.
Considering he got my mom pregnant and took care of my annoying ass for 18+ years.................... lolGood for you! Incredible generosity
We are all paying MSRP right now for a bronco so I don't see your point. Also if I pay cash and decide to sell it to make $10,000.00Excellent credit gets you a terrific rate. Automatic twice a month withdraw payments lesson the over all cost of the loan. Meanwhile, the cash left over from only making a down payment gets invested, and pays a modest 5-8%. The gain beats the loan interest. Now the Bronco changes one factor. You always get a better vehicle cost if you tell the dealer you are financing rather then paying cash. If you want or can pay cash, do it with the finance company or bank after you buy the car, not with the dealer.