Quote:
Originally Posted by spacemanspif
What money? He is planning (hoping) to sell the Cruz for $10.5k, use the money to pay off Cruz and take the rest to buy a Honda outright. Leaving little, if anything, left to be invested.
|
The money that he's currently giving the bank every month. At the moment he has a car
and has to make monthly payments on a loan with $7k in principal. After this swap he'll own a car...
and not have any payments to make. Other costs will go down too.
That's not even a wash, it's a win. If he can sock away that same payment every month then instead of disappearing into the car he already drives, it'll be a pile of cash that he owns outright. It can go towards repairs if needed or eventually turn into a newer car, a pretty nice trick.
Or he can keep writing a check every month for the Cruze.