laterbloomer
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Post by laterbloomer on Oct 22, 2022 22:46:44 GMT -5
Yes it's used so that's fine. Low milage, good price.
So here's the question...do I pay it off up front or finance it at 5% for 4 years and keep piling the money into retirement investments? We're talking about $14,000
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toomuchreality
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Post by toomuchreality on Oct 23, 2022 1:44:23 GMT -5
I don't know the answer, but I hope you find something you like and enjoy. Happy car shopping!
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Regis
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Post by Regis on Oct 23, 2022 5:36:02 GMT -5
I'd finance because, on average, I can make more than 5% on my retirement investments.
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laterbloomer
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Post by laterbloomer on Oct 23, 2022 7:27:58 GMT -5
I don't know the answer, but I hope you find something you like and enjoy. Happy car shopping! Thanks, I found the car. A 2015 kia soul with 80,000 km (42,000 miles) on it. π
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toomuchreality
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Post by toomuchreality on Oct 23, 2022 12:21:06 GMT -5
I don't know the answer, but I hope you find something you like and enjoy. Happy car shopping! Thanks, I found the car. A 2015 kia soul with 80,000 km (42,000 miles) on it. π Nice! π
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schildi
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Post by schildi on Oct 24, 2022 0:07:38 GMT -5
Not sure it matters much, but 80k km is more like 50k miles. I would probably finance it if you have to choose and can't do both (pay off and retirement accounts).
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giramomma
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Post by giramomma on Oct 24, 2022 8:01:18 GMT -5
I bought a new to me car at the same price point in March of 21. I paid for it in cash. We had the Biden bucks that covered half. Long term 7K out of savings isn't going to make our break our retirement. And I say this being about 8 years from going from full employment to part time employment (down to about 30 hours a week). We also really cannot afford to add another bill into our monthly budget,
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tskeeter
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Post by tskeeter on Oct 30, 2022 13:48:58 GMT -5
I vote finance the car.
Five percent is a pretty low rate for an auto loan.
Looking at historical investment returns (10% - 11%), you should be able to generate much more than 5% annual gains on any money you can keep invested, rather than using the money to pay off a car.
Given the current market performance, Iβm expecting investments to deliver gains over the next couple of years that are significantly higher than historical average return levels.
Donβt trade what could be a 15% return on invested funds to avoid paying 5% on a car loan.
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