I'm assuming a car loan would be 3-5 years, but no longer than 5. I personally wouldn't put money I wanted to use for something specific into the stock market for only 5 years. Right now the markets on a high - but a lot of people in the financial industry think a big part of that is due to the Fed greasing the economy - odds are they'll stop in 3-5 years and who knows if there will be a correction then.And with a car, there's always a risk it could get damaged someway - and insurance might not pay you back as much as you still have a loan for - if the market's down at that time, than it's like losing twice.Might be wrong - but I also thought that car insurance is higher when one has a loan on a vehicle compared to once it's paid off (but I might be wrong there).Overall - if you have the cash I think it's better to pay cash than take out the loan and invest in the hopes your investment increases faster than your loan rate.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra