First time buying new car leasing payments?

[Negative3]

There are other reasons to take a loan at .9 or 1.9% when it's available - liquidity. We would of had to cash in 6.2% bonds or wait a year to get our new (in 2012) Si. Quick math indicated we could take the 1.9% 6 year loan and gain $7.724 over that period. Took the loan and were able to pay it off in 11 months, at a total loan cost of $225. Yes we would/did carry collision during the loan but that was only about $120/year.

Heres another way to look at it, if you can afford to pay the car off that quickly and are smart with investing - you could make 6% a year give or take with an investment over a lengtht term, so one could argue that you are better off to invest the money than pay the car off if your loan rate is that low. Paying it off early actually costs you money if you think about it this way..... Same goes for mortgages... IF you are smart with investing and capable of managing the risk level.

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[tacthecat]

Heres another way to look at it, if you can afford to pay the car off that quickly and are smart with investing - you could make 6% a year give or take with an investment over a lengtht term, so one could argue that you are better off to invest the money than pay the car off if your loan rate is that low. Paying it off early actually costs you money if you think about it this way..... Same goes for mortgages... IF you are smart with investing and capable of managing the risk level.

What you're saying is true enough but we only had a break from putting our grandchildren through College and don't take short term risks. This was an easy decision to make with no downside, unless we could predict the future. We weren't looking for a loan but didn't want to draw down tax-free investments, high dividend stocks, or cash in our 6.2% I-bond "rainy day fund" (which todays purchases, or a repurchase, pay about .3%). We're buy and hold investors, not in and out short-term. We were happy with our decision.
BTW our actual net gain return on the transaction was 5.3% - well within your 6% give or take - with no risk!

 

[Negative3]

What you're saying is true enough but we only had a break from putting our grandchildren through College and don't take short term risks. This was an easy decision to make with no downside, unless we could predict the future. We weren't looking for a loan but didn't want to draw down tax-free investments, high dividend stocks, or cash in our 6.2% I-bond "rainy day fund" (which todays purchases, or a repurchase, pay about .3%). We're buy and hold investors, not in and out short-term. We were happy with our decision.
BTW our actual net gain return on the transaction was 5.3% - well within your 6% give or take - with no risk!

Makes perfect sense

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