Quote:
Originally Posted by redpoint5
Having cash now is a bad investment as inflation continually devalues it.
Spending all cash and taking out the largest fixed rate mortgage you could get approved for about 4 years ago would have been the best move.
By pure coincidence, that's roughly what I ended up doing.
No way to predict the market accurately, but my sense is used car prices will continue to fall, and once manufacturers can meet BEV demand the used ones will further drop in price.
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Here's some context:
* 2016 KIA Soul EV, $9,980, with CARFAX
* $998 down
* 60-months @ 8.62%
* around $ 185/ month
* $ 8,982 unpaid balance
* Cost @ 8.62%, $9756
* Total out of pocket, $ 12,098
* Hidden 14.96% finance charge ( $ 1,343 ) never mentioned ( just like GMAC in 1982 )
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* Denton Teachers Credit Union 12-month Cd, @ 4.33% APY.
* $10,000 CD, rolled over, each maturity
* $ 998 down
* $ 158 / month, 60-months.
* $ 9, 537-paid, plus $998 down + $ 10,535 total paid.
* $ 555 cost of loan
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* $2,360.78 in paid interest over 60-month term.
* $10,000 has become $ 12,360.78
* The loan cost $ 555, but I earned $ 2,360 at the same time, for a $ 1,586 net gain.
* $ 555 vs $ 1,117 w/ CARFAX
* CARFAX works out at 21.22% simple interest vs 6.19% at the credit union.
* @ 5% fractional reserve requirement, the credit union can lend out $100,000 to the local economy.