Finance a car or borrow money from 401k

[Anonymous]

Our friend is planning to pull money out of his 401k to buy a luxury car.

Is this normal?

We always finance or lease. Never thought to borrow against 401k.

[Anonymous]

It's his life. If you get a thrill by tut-tutting, by all means, tut-tit away.

[Anonymous]

Option 3. Keep the one he has or buy/ finance a much cheaper reliable Japanese car.

[Anonymous]

Your friend is an idiot, he's not old enough to withdraw without severe penalty right?

[Anonymous]

Why lose the tax free appreciation on a 401k when you can get cheap financing on a car? Makes no financial sense. We just pay cash for cars.

[Anonymous]

It's a bad idea, of course. Are you going to tell him that or are you just looking for confirmation?

[Anonymous]

Anonymous wrote:It's a bad idea, of course. Are you going to tell him that or are you just looking for confirmation?

This is a new friend so I am not going to say anything. I was just curious if this was something people did.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's a bad idea, of course. Are you going to tell him that or are you just looking for confirmation?

This is a new friend so I am not going to say anything. I was just curious if this was something people did.

It's not. Your friend is a moron.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's a bad idea, of course. Are you going to tell him that or are you just looking for confirmation?

This is a new friend so I am not going to say anything. I was just curious if this was something people did.

No. This is a worse idea than leasing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's a bad idea, of course. Are you going to tell him that or are you just looking for confirmation?

This is a new friend so I am not going to say anything. I was just curious if this was something people did.

No. This is a worse idea than leasing.

OP here. I love leasing. I like getting a new car every 2-3 years and never have to deal with repairs. DH only buys cars in cash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's a bad idea, of course. Are you going to tell him that or are you just looking for confirmation?

This is a new friend so I am not going to say anything. I was just curious if this was something people did.

No. This is a worse idea than leasing.

OP here. I love leasing. I like getting a new car every 2-3 years and never have to deal with repairs. DH only buys cars in cash.

And he always buys a certified used car.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's a bad idea, of course. Are you going to tell him that or are you just looking for confirmation?

This is a new friend so I am not going to say anything. I was just curious if this was something people did.

No. This is a worse idea than leasing.

OP here. I love leasing. I like getting a new car every 2-3 years and never have to deal with repairs. DH only buys cars in cash.

leasing is more expensive than buying over time.