Quote:
Originally Posted by Killramos
All of my cars are worth more than I owe on them.
Because I buy them for cash.
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You can get financing for 0.9% nowadays. That's basically free money. I'd rather put $40k in an ETF like VOO with an average annual return of 15%.
So let's say I finance $40k at 0.9%. I'd pay $360 in interest the first year, but get a $6k return on investment on the ETF.
If I paid cash, it save that $360 but lose $6k in potential earnings. It's a huge net loss.