In our case, we were able to get a better rate from investing than the rate we’re getting charged on the car loan. It was “cheaper” to take the loan than to pay up front! This economy is nuts.
When borrowing rates are lower than investment returns borrowing just makes good financial sense.
I could pay off my home loan today, but at 2.5% interest why, when I can keep that money and leave it in a safe high return investment? I’d be losing 10s of thousands a year in returns for my retirement to save a few thousand in mortgage interest.
Same thing with cars.
Then again, I don’t even buy new cars. I just get a dependable used Japanese car and drive it until it dies at 300k miles.
Even people that don’t need loans still do some sort of financing option for their credit score.
In our case, we were able to get a better rate from investing than the rate we’re getting charged on the car loan. It was “cheaper” to take the loan than to pay up front! This economy is nuts.
That’s great if you can guarantee you beat the interest rate of the car. But as you’ve said the economy is nuts and anything can happen 🤣
When borrowing rates are lower than investment returns borrowing just makes good financial sense.
I could pay off my home loan today, but at 2.5% interest why, when I can keep that money and leave it in a safe high return investment? I’d be losing 10s of thousands a year in returns for my retirement to save a few thousand in mortgage interest.
Same thing with cars.
Then again, I don’t even buy new cars. I just get a dependable used Japanese car and drive it until it dies at 300k miles.