Quote:
Originally Posted by ILSMKU
He only owes 35K on a car worth 50k+ and you think hes in a bad debt position?
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Yes? He owes $35k on a car, and is looking at dropping $13k on what is basically an automotive accessory? This is about as bad as it gets with regard to financial planning. Retirement? Rainy day fund? What happens if there are complications with the supercharger or something else goes wrong with the now out-of-warranty car?
Quote:
Originally Posted by KennyPowers
there is ZERO wrong with taking out a loan at a low rate that allows you to be more flexible with the cash you have on hand. i could pay off my car, but have a 1.9% interest rate and have made much more with my investments over this time.
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The thing is I don't think any more than 10% of the people who say this actually have the cash to cut a check for the car. Granted some do, but still, I think most don't. Also it's generally a bad idea for an amateur to try to hedge against the interest rate on a loan, especially when the loan is taken out to buy a +$50k car.