Mont G&J wrote:
I'm not impressed by those of you that take money from your savings to pay cash for a vehicle when interest rates for a new vehicle loan are at an all time low ranging from zero to 2.5%.
Money investments, made for me by my financial adviser, have consistently exceeded 12% in recent years. To pull money out of there and pay cash for a truck doesn't make sense.
Paying cash in the old days when interest rates were much higher was probably good advice back then, but the fatherly advice you got fifty years ago may not hold true today.
I believe having savings increasing in worth, and making low interest truck payments, is wiser, than a 'paid for' new truck setting in the driveway.
At least that's the way I see it.
Yes, as long as vehicle interest rates are low and you can make better rates on your investments this makes sense. That said, I financed the truck in my signature @ 3.7% and paid it off early because I got tired of making payments. My wife's minivan is financed at 0.9% for 60 months, so it's pretty hard to justify paying it off.
