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BallPlayer13 OP t1_jeeika3 wrote

Reply to comment by BoxingRaptor in Unsure if a car loan is the best or if paying in full is better. Nor is havibg a impulse buy to cover the off chance i dont find a deal later on. by BallPlayer13

I agree. The issue is this car has been hard to get for MSRP. So, many people have been paying over sticker (craziness to me). So I am unsure if meeting an MSRP vehicle pass is the best move since it's not a 100% guarantee I will find another one at MSRP.

What are your thoughts on taking an auto loan for 20k at this 7 % apr?

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BoxingRaptor t1_jeek1js wrote

Honestly, it sounds a lot like you're getting caught up in FOMO with this car. Is there any reason why you can't wait until the apparent public hysteria about this model dies down, and then see if you're still 100% into the idea? This will give you more time to save, as well.

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BallPlayer13 OP t1_jeeklev wrote

This model of vehicles has been “sold out” for two years, going into it's 3 year of being sold. I am not sure if the “hype” for this vehicle will die down. I understand your outlook.

What is your outlook on not spending all my cash, and receiving a auto loan at the 7%~ interest rates for $20k?

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rc4915 t1_jeeq81n wrote

Is there any cost of getting the loan? Fee for paying it off early? And credits/rebates for using dealer financing? You can always get the loan and pay it off the next month if you have the cash on hand. It’s much harder to get equity out of your car.

But you’re paying 7% on money you likely have sitting in a savings account making much less… paying 7% with post-tax money is like turning down a guaranteed 9% return. The only time that makes sense is if you are avoiding a higher interest rate elsewhere (need an unsecured loan for a home improvement, would use a CC with a high rate to cover expenses if you lost your job, etc).

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BoxingRaptor t1_jeepzk6 wrote

Well, you haven't really said anything about your income, other than that you put into an IRA bi-weekly.

What is your annual income, and what do your current expenses per month look like?

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