[kgelfen360]

Originally Posted by Casone238

Yeah Penfed had the lowest rate a little higher then yours. Ideally I would like the keep the car long term since the X5 will be the daily where as the M3 will be the weekend car or when my wife is out and about I have a car to get around in. However I’ve never had a car longer then 3.5 years. If I finance or lease will determine if I PPF it or ceramic coat it. Paying cash is not a option my wife wouldn’t agree to that 😅

Yea I plan to do PPF as well so that’s another like 6k. Lol.
I just think from financial perspective cash is the cheapest option.
After tax return on cash yield of 5% is closer to 3.25% (at least for me). So it’s not like a great deal. When interest is 6%

[DFW_M]

Originally Posted by Casone238

Base is 60%
Comp RWD is 59%

So, how did you get the numbers above (56-57%)?

[Casone238]

Originally Posted by DFW_M

So, how did you get the numbers above (56-57%)?

I got the numbers straight from Edmunds. I’m getting the X drive which is 55%.

[Casone238]

Originally Posted by kgelfen360

Yea I plan to do PPF as well so that’s another like 6k. Lol.
I just think from financial perspective cash is the cheapest option.
After tax return on cash yield of 5% is closer to 3.25% (at least for me). So it’s not like a great deal. When interest is 6%

Yeah it’s all about perspective. Example if I was thinking about cash, which for my build after taxes would be 101k with the Pedfed loan I would paid 8k in interest through out the life the of the loan. However I can invest that 100k in apple stocks for, where as just in March the price per share was about 150. Now it’s at 175. That’s about a 17% return in just 2 months not to mention the dividends you will receive. So the argument would take the loan and invest the money. The main reason why my wife wouldn’t allow me to buy it cash.

[kgelfen360]

Originally Posted by Casone238

Yeah it’s all about perspective. Example if I was thinking about cash, which for my build after taxes would be 101k with the Pedfed loan I would paid 8k in interest through out the life the of the loan. However I can invest that 100k in apple stocks for, where as just in March the price per share was about 150. Now it’s at 175. That’s about a 17% return in just 2 months not to mention the dividends you will receive. So the argument would take the loan and invest the money. The main reason why my wife wouldn’t allow me to buy it cash.

I agree with that just no guarantee where it will be in 5 years but I hear you. It should be better bet.
I am gonna keep looking around. I am ok with maybe doing finance on half the car at like 5%. Hate loans…. Lol. But I hear you.
Looks like PenFed 5.34% for 60 months now

[Casone238]

Originally Posted by kgelfen360

I agree with that just no guarantee where it will be in 5 years but I hear you. It should be better bet.
I am gonna keep looking around. I am ok with maybe doing finance on half the car at like 5%. Hate loans…. Lol. But I hear you.
Looks like PenFed 5.34% for 60 months now

I’m with you I hate loans too.

[Max432]

Originally Posted by Casone238

Yeah it’s all about perspective. Example if I was thinking about cash, which for my build after taxes would be 101k with the Pedfed loan I would paid 8k in interest through out the life the of the loan. However I can invest that 100k in apple stocks for, where as just in March the price per share was about 150. Now it’s at 175. That’s about a 17% return in just 2 months not to mention the dividends you will receive. So the argument would take the loan and invest the money. The main reason why my wife wouldn’t allow me to buy it cash.

You are forgetting the governments cut in your equation. 15-20% of the profit depending on your income for federal, plus state income tax. Not quite the windfall portrayed. Plus owning free and clear makes it easier to sell by owner when you have title in hand. If you are involved in an accident just you on the insurance check…not you and your partner the bank. Also the reverse can happen. You withdraw the funds when Apple is at $175 and two months later it drops to $150. Then you got one hell of a discount on the car and look like a genius lol.

[Casone238]

Originally Posted by Max432

You are forgetting the governments cut in your equation. 15-20% of the profit depending on your income for federal, plus state income tax. Not quite the windfall portrayed. Plus owning free and clear makes it easier to sell by owner when you have title in hand. If you are involved in an accident just you on the insurance check…not you and your partner the bank. Also the reverse can happen. You withdraw the funds when Apple is at $175 and two months later it drops to $150. Then you got one hell of a discount on the car and look like a genius lol.

Yeah it’s all about perspective, I’ve personally made a lot of money from apple & Microsoft stocks especially from being an employee at both places getting RSU’s. There are ways to avoid capital gains taxes especially if you invested in real estate or if you are a business owner. There’s lots of loop holes to get around taxes. It goes back to perspective, like my wife wouldn’t dare. Where as I believe not having a car note I can make that 100k back in less then a year