Quote:
Originally Posted by MidniteBlues
PS: its not a matter of how much money or how long financed. A car won't be worth shlt after 72 months.. Doesn't make much sense to owe $15,000 on a car worth $5,000 now does it?
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As people have said, that isn't true at all... You were going to pay that $15k eventually, whether it was right away or not, so it doesn't matter how much the car is worth, but the longer you hang onto that money, the more interest you will make on it. Its always better to pay later if you're not paying interest on the loan. That is, of course, assuming you could always afford the car in the first place. The only reason why owing $15k on a $5k car is is bad is simply because you have a lot of risk, since you can't just sell your car to bail yourself out. But over the course of ownership, so long as you can afford it, if you invest your money instead of paying off the car with it immediately (with zero percent interest), you will basically have paid less for the car with all the interest you made on your investments.
-Taylor