What don’t you understand?
Why you'd finance a depreciating asset for so long. Either you can afford it or you can't. I guess if you're getting super low interest rates it's not terrible but just the concept hurts my savings I guess.
With interest rates near zero, you should borrow money for as long as possible. Your money should be in other appreciating assets. Why drop $50k into a car when you can put $50k into an investment with returns much, much greater than the interest rate you'd pay on a car loan. I could walk into my dealership and write them a check, but that would be the worst place for my money. Simple finance 101.
@JohnnyBronco, what were the terms of your lease? Curious.
What the OP said. However many of us are not flush with $50k cash in the bank earning a half percent or willing to convert an investment earning 8% when by borrowing that held investment only drops to 6%, not 0%. We are not all investment brokers or C&W stars or even YouTube sensations who have bamboozled you by your following them for their early delivery to certainly be fully paid for. PPO5. Or it may boil down to monthly cash flow.
Not quite true…..I have no banking relationship with BofA except an Alaska Airlines Visa card. When I initially applied, it was 2.09, then upon approval, it was 1.99, then upon finalizing the loan, it dropped to 1.94 for 60 months. My 2 credit unions were higher. I made a 30% down payment that could have made the slight reduction possible.
He said for 72 months. Their rate for 60 months is sub 2.0%. And he said 1.29% for 72 months which isn't possible.
if I recall correctly, my initial 2.09 rate was good for up to 72 months, a longer term that I had no intention of taking.
Okay.. and. That isn't 1.29% and I got 1.99 for 72 months a few months ago on my truck, but 2.29 was as good as bofa would do now with an over 800 fico and almost 40% down.
