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      03-20-2013, 11:52 AM   #54
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Drives: E92 M3 SG coupe
Join Date: Feb 2012
Location: Orange County, CA

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Originally Posted by Giggs View Post
^this When money is practically free don't use your cash, use other people's money. Just make sure you have an exit strategy. You can borrow money from PenFed right now at 1.49% for 5 years on a car loan with no finance charge. That is practically free!
Sorry don't mean to thread jack, but...

Here are some interesting facts:

At todays borrowing rates of 1.49%, lenders are actually paying you to borrow. The annual inflation rate has been 2%, but the actual rate is much higher (4%+) since BLS (Bureau of Labor Statistics) has been altering the basket of goods that comprises the keep the calculated inflation rate low, which helps keep social security payments low...

So in general terms, borrowing at 1.49% when the dollar is losing 4%+ value is really paying you roughly 2.5% percent. You financial experts, these are just general numbers.

If you dont believe the inflation numbers look at historical Oreo Cookies pricing below:

[1990] 2.69/lb $0.168c/oz
[1991] 2.39/lb $0.149c/oz
[1992] 1.99/20 oz $0.099c/oz
[1993] 1.19/5.8 oz $0.205c/oz
[1994] 2.49/20 oz $0.125c/oz
[1995] 1.09/4.8 oz $0.227c/oz
[2004] 2.99/lb $0.187c/oz
[2008] 4.29/18 oz $0.238c/oz 27% increase from 2004
[2012] 4.59/15.5 oz $0.296c/oz 24% increase from 2008
[2013] 4.59/14.3 oz $0.321c/oz 8% increase from 2012

However, to take advantage of the rates and turn a profit, you will need to buy something that beats inflation...hard assets or stocks...

I am taking advantage of all the 1% loans right now for any reason.
E92 M3 SG DCT - AA Filter, Verstraβe Paddles, ECS SS, MH race stud, Stoptech BBK, MR Exhaust,RE Pulley, BPM Tune,Euro bumper and GTS lip, Euro MDM & DCT, KW CS, Recaro PP, TMS Soild Diff Mounts, MRF solid subframe mounts, GTS aero, RPM track built motor.

Last edited by Wendall; 03-20-2013 at 12:00 PM.