Thread: car loan
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Old 11-06-2007, 07:19 PM
AvivaSimplex AvivaSimplex is offline
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Default Re: car loan

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no your reasoning is not wrong, its just they charge alot so its hard to beat guaranteed over the timeframe of the loan ~ 5 years

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Just to expand on this, your car loan will likely be in the 10-15% APR range. Buying the car upfront and avoiding the loan is like investing at a guaranteed 10-15%. That's tax free, too, so it's like a taxable income of 13-20%. There's no way your investments will make you more than 5% guaranteed.
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