nidena
Senior Member
Joined: Dec 28, 2010 20:32:26 GMT -5
Posts: 3,581
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Post by nidena on Jul 23, 2019 11:03:48 GMT -5
I thought of this thread when my roommate's 20 year old Honda took a crap yesterday. Looked up 3-5 year old Hondas and they're pretty inexpensive $10k-$15k. I, myself, bought new but that's because the purple color couldn't be found in any used models.
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GRG a/k/a goldenrulegirl
Senior Associate
"How you win matters." Ender, Ender's Game
Joined: Jan 2, 2011 13:33:09 GMT -5
Posts: 11,291
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Post by GRG a/k/a goldenrulegirl on Jul 25, 2019 14:07:06 GMT -5
That's what I do - the last time that I paid cash for a new car was in 1985 (interest was 15% at that time). Since then I have financed our cars 100% - ie, zero down, 60 months of payments. I get the results that Dave suggests - except that my average return is about 11%/yr, not 12.. As for junker, used car, new car - that's a separate debate. As long as you can get inexpensive rates (<5%), you will do better by 100% financing. And leave your own money invested at 11%/yr.
The people Paul are saying should get car loans are the ones with no money. They're not keeping the money invested at 12% or 11%. They're just going into debt. AND those people aren’t likely to qualify for .9% financing or anywhere close to it, so the mythical $200 payment is just that for this population.
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