Car Finance

[draknon]

Since half the people here don't seem to put much weight on "risk" and like the idea of investing the difference (I do not). Why not borrow the full $25,500 value and invest the extra $6000 as well?

 

[r83osu]

Since half the people here don't seem to put much weight on "risk" and like the idea of investing the difference (I do not). Why not borrow the full $25,500 value and invest the extra $6000 as well?

ehhh, The rate of depreciation of my focus is much much higher than my APR on the loan? Don't think that's a fair comparison...

Also that $25,500 is a NADA value, and while I would like to realistically be able to sell my car at that value (seeing as I paid 26k for it last year), that is a very unlikely "private sale" price.
That figure is probably a pay out figure if the car gets totaled.

 

[iCyborg]

Since half the people here don't seem to put much weight on "risk" and like the idea of investing the difference (I do not). Why not borrow the full $25,500 value and invest the extra $6000 as well?

You can go with bonds, there's little risk unless you go heavy on junk grade bonds. 1.49% is practically below inflation, it's not a hard target. And we're talking about 4-5 years, I'd probably throw in some equities in the mix too...

 

[Midwayman]

I vote for extending it. If nothing else if your job situation changes or you have a major emergency expense come up it leaves you with flexibility to pay less.