Quote:
Originally Posted by GoinAllTheWay
Ya, that's where taking the cost of the loan into consideration is important. OK, so my disconnect isn't as bad as I thought.
I do need a new car, and I could certainly pay for a brand new one in cash, just struck me as not doing it right I guess? Put down a healthy down payment, make sure the monthly payments fit into my budget and then invest a good chunk of the remaining money.
And I would almost certainly by used. 2 yrs old is perfect I think.
At times I feel like I have to much sitting in the bank doing nothing productive but the though of just dumping a majority of it into a new vehicle strikes me as bad use of resources.
|
Is it? If you find the vehicle that fits what you want take a look at the 2 year old models (likely a rental or lease return) and compare to the brand new. Your interest rate is going to be much higher on that 2 year old car, the savings you get are not going to be as much if you factor in the additional costs to borrow, and then the potential of an abused vehicle also needs to be factored it.
Now every situation is different but you have to look at everything.