Quote:
Originally Posted by Phanuthier
True, I get that a car is a depreciating asset. (One reason I drive a Civic and not a BMW.) However, a car is a necessary evil where most of us live... so if you're going to own a car, and you have the credit rating to back it up, wouldn't you rather take the low interest rate, and put your cash in the market?
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I'd paid the car off outright if I could. That's just what I would do. I don't believe there's a black and white answer for your scenario.
If there are no brainers such as 0% interest for X number of months on your car payments, and you have a high savings account, then I'd definitely take the low interest loan and stick the cash in the account.
I personally do not want to be left in a position where I need to cash out an investment not on my terms especially if I had to take a loss.