Financing Survey

ddndoug wrote:

IDman wrote:
We have always paid cash. Never finance anything that will depreciate in value or you will be upside-down sooner or later.

While in theory I agree, but... With such low interest rate environments (we can get 5% at our credit union for up to 10 years) why not let your investments work for you and make payments. After you add the ability to write-off interest on the loan, in the 25% tax bracket your effective loan rate is 3.75%. (Last year most of my accounts had returns in the high teens and low twenties.)

To each their own, I guess. JMHO

Doug

I am glad someone else feels the way I do. At the time I bought, my investments were making 3 to 4% more than the cost of the loan. Made more sense to finance rather than sell off for the cash.

Financed for 20 years at 5%. I never figured it as a percentage of income although it is less than 2%. I used the dealer financing but then refinanced for a better rate.