Quote:
Originally Posted by AlpineWhite_SJ
Quote:
Originally Posted by BzsBimmer
At 1.5%, why pay off unless you have a lot of disposable income. That’s like almost free money. You might be better off investing that lump of cash. Especially on a depreciating asset.
If you need a cash injection for some awful reason, hard to liquidate the car over cash. Just my humble $.02
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Normally, I’d agree with this, but the amount of easy returns out there is shrinking fast. 1.5% sadly isn’t even a bad return nowadays. Depends on how you feel about risk - you could pay off that loan and be guaranteed the 1.5 vs an unknown return that could be higher or lower. I’m leaning into paying off debt with 2-4% APR because it’s not a bad return given everything going on and it lowers my monthly expenses and risk. |
+1
I got a car loan @ 2.79%. With current volatility and low rates I will pay off the car this year. I already paid ~40% in 4 months.
2.79 after tax risk free return.