Hey oldguy, what's your opinion on auto financing term? 5 years? Is 7 ever a good idea?
Would you say its a wise idea to wait until we have the cash-equivalent of the car purchase, then invest that money in the VFINX/equivalent at the time of purchase, to essentially "pay ourselves" for the car?
Tue Jan 09, 2018 7:27 pm
oldguy Senior Member
Cash: $ 745.25
Posts: 3623
Joined: 21 May 2006
Location: arizona
That's what I do - ie, I have the car money in the SP500 but then I DON'T use it. Same with buying rental houses, I have the money for the down payment, but then I DOAN'T use it, I borrow the 'down'.
I've stuck with 5 year loans for over 40 years - but maybe I should look at 7. In general - I put as much as I can, as early as I can, into the 11% fund. "Time" is the major metric for compounding.
