bada bing
Full time employment: Posting here.
I hate debt of any kind.
That said. I am going to borrow every dollar I can for my next new car in a couple years. I have enough to pay cash for the dealership, but I don't want to sell $40,000 plus in investments to pay cash for a car. I will finance it at .9% and finance it for 6 years on their dime. If I sold $40,000 in my portfolio it would generate taxes of about 25% state and federal.
My income will handle the monthly payments and keep me well within the much lower tax bracket.
Plus I believe the $40,000 invested in VG Balanced fund will yield a better return than the .9% the dealership is offering.
This is coming from a guy who loathes debt of any kind.....
+1
I haven't bought my first car in retirement yet, but probably will look for one next fall. My daily driver is a 10 year old Subaru WRX that I bought new for cash. I'll probably replace it with a Subaru, but I'm thinking like you. I think I'll dealer finance. My thinking on debt has changed in the last 10 years. The arbitrage between both mortgage rates & car financing verses reasonably safe market returns is pretty attractive. I've held my 2.625% mortgage now for 10 years because I couldn't see paying off that cheap money. In the current new car market, you can't really negotiate any savings for cash, dealers are too incentivized to use financing. Having bullet proof credit is only worth something if you use it. I'll wait for a teaser rate, I'm not on foot, just wanting to freshen up the daily driver. I sort of expect some good deals next fall, both on new car prices and financing rates.
To answer the OP's question, I intend to finance and include the new payment in my monthly budget. I'll set payments up on autopay from my checking, just like all my other recurring bills.
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