[daixloxbmw]

Okay here is some background, so in about two years, I plan to trade in my 2011 135i for a new car. Currently leaning towards the new C7 Corvette Grand Sport but the F82 M3 and F20 1M are still being considered.

Anyway, here's the question, I expect to get about a $10k bonus from my company so what should I do with it?

A) Use that $10k as an additional down payment to my 2011 135i trade-in to reduce the monthly payments and obviously pay less interest. Additional background, I have excellent credit so I would assume that I can get whatever is considered a good interest rate in two years.

or

B) Use that $10k to invest in my company's stock. Additional background, my company is in medical software is doing very well financially. Even the 2007-2009 recession had little impact on it. My company is privately traded, so it controls the value of its own stock. Historically (over the past 15 years), the stock has increased its value about $3 per year and pays great dividends at about $3.28 per share annually. So with $10k, I can buy about 200 shares, which will pay about $656 annually in dividends, plus the 200 shares will likely increase its value about $600 per year if the trend continues. Bottom line, my company stock has really been stable and has continued to grow steadily and pay solid dividends for the past 15 years and I see no reason why that would change in the near future.

So having said all that, what would you do with that $10k? Even with my very limited understanding of finances, I would assume that in the short term, it makes more sense to use it as a down payment for the new car since the interest is initially much greater than the stock growth/dividends but in the long term, the stock growth and dividends will eventually surpass interest, right?

Does my logic make sense? So unless I absolutely cannot afford the monthly payments without the additional $10k down payment (not the case but just for argument's sake), is there any reason why I shouldn't invest it into my company stock instead? I realize doing this will mean that I have to pay more in monthly car payments and pay more in interest at least for the first few years but I am okay with that knowing that the investment in stocks will eventually pay off in the near future.

BTW, before anyone else says it, not buying a new car is not an option even though I realize that is the wisest choices financially.

Thanks in advance!