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Old 12-11-2005, 03:02 PM
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swchang swchang is offline
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Location: Baltimore/DC area
 
Join Date: Oct 2003
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Mein Auto: BMW, M-B, Honda
Quote:
Originally Posted by jetstream23
Or, if all your bills are paid, no debt except for a mortgage and you max out your 401(k) then look for a very low financing rate like I did. I have enough "money in the bank" for a few BMW's but I like having the money earn money for me. So pay half in cash and finance the rest at a rate approximately inflation these days. Paying $45K in cash wasn't a smart move for me when that money earns in the 5-6% range and the cost of borrowing was lower than that.
Even at rates of 1.9-2.9% financing, if you're not purchasing or leasing through a business, do you really think a 5-6% stocks return rate is worth it? You're dealing with capital gains taxes, fees for each stock transaction, and inflation. (I'm not challenging you, just questioning. I had originally thought low-interest finance rates were smarter, but now I'm not as sure.)
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