Car loan, good or bad?

[Anonymous]

Just curious what others think...

I bought a car last fall and got their 0.9% financing (even thought I didn't need it, the rate was seductive). I have about 20k financed, although I could easily pay this off. I have about 40k uninvested, and have no imminent plans for it. Does it make sense to keep a loan like this, since the interest is so low? It's not like the interest is tax-deductible.

Thanks.

[Anonymous]

Anonymous wrote:Just curious what others think...

I bought a car last fall and got their 0.9% financing (even thought I didn't need it, the rate was seductive). I have about 20k financed, although I could easily pay this off. I have about 40k uninvested, and have no imminent plans for it. Does it make sense to keep a loan like this, since the interest is so low? It's not like the interest is tax-deductible.

Thanks.

In theory you can get a better return investing your cash elsewhere (and that would be true the last few months, certainly). Under 1% is cheap money. So, yeah, the loan is worth it.

[Anonymous]

I would just keep the car loan. It's almost free money.

[Anonymous]

Thank you for starting this thread. My DH did that -- I just wanted to pay it off. I guess I am just stuck in the 1950s or something!

[Anonymous]

I have a loan and wish that it was paid off. Just pay it off and keep car for 10+ years.

[Anonymous]

Anonymous wrote:Thank you for starting this thread. My DH did that -- I just wanted to pay it off. I guess I am just stuck in the 1950s or something!

Yeah, leave the money management to DH. Your take is really kind of stupid.

[Anonymous]

Anonymous wrote:Thank you for starting this thread. My DH did that -- I just wanted to pay it off. I guess I am just stuck in the 1950s or something!

I would pay it off.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Thank you for starting this thread. My DH did that -- I just wanted to pay it off. I guess I am just stuck in the 1950s or something!

I would pay it off.

Why on Earth? Not very financially savvy? Leverage is your friend when the rate is < 1%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Thank you for starting this thread. My DH did that -- I just wanted to pay it off. I guess I am just stuck in the 1950s or something!

I would pay it off.

Why on Earth? Not very financially savvy? Leverage is your friend when the rate is < 1%.

Not for a stupid car loan, Gordon Gekko. Pay that kind of shit off. Who has car loans?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Thank you for starting this thread. My DH did that -- I just wanted to pay it off. I guess I am just stuck in the 1950s or something!

I would pay it off.

Why on Earth? Not very financially savvy? Leverage is your friend when the rate is < 1%.

Not for a stupid car loan, Gordon Gekko. Pay that kind of shit off. Who has car loans?

Dude, if someone's going to loan me $20,000 for 0.9% interest and I can make 9% interest elsewhere, I'm going to do that. But you carry on scraping by, mkay?

[Anonymous]

Agree, keep the loan. Invest the difference.

Source: I'm a millionaire.

[Anonymous]

Pay it ff. I'm a millionaire with no debt.

[Anonymous]

Anonymous wrote:Pay it ff. I'm a millionaire with no debt.

No, you're not. No one with any actual financial sense thinks this way. The only people who think this way are slavish to Suze Orman and Michelle Singletary, two debt phobes who are otherwise known as the stupidest people in personal finance.

[Anonymous]

Yes, I am. $959k invested, home on the Hill paid off (and income generating), no other debt of any kind. And I'm under 50.

[Anonymous]

Anonymous wrote:Yes, I am. $959k invested, home on the Hill paid off (and income generating), no other debt of any kind. And I'm under 50.

No, really, you're not.