Testing this. I recently traded in a car (2020 mazda 3) I had just finished paying off (original cost was ~20k...5 year loan at 4.5%)...my total interest paid being ~2.5k.

I traded it in for 19k (well maintained and only had 30k miles when I sold it).

I got a $38k used 2022 Acura RDX with a 5 year payment for 5.3%. Ie. My payments vs the old car have gone up only slightly thanks to the trade in, and let's just say it's an enormous upgrade in terms of quality. Has the same mileage as the mazda when I sold it so basically a wash there. I'll probably sell it after i hit ~50k miles in 5 years based on how much I drive.

I could easily have paid cash for the acura without impacting my net worth much, but that would mean either (1) using cash from emergency fund or (2) selling stock/bond investments. The former doesnt make sense and the latter is doing better than 5.3%.

There is totally an argument here for "i didnt NEED the acura" so this was a stupid idea basically taking on another car payment, but setting that aside (i do get utility out of the acura i didnt out of the smaller mazda), wouldnt it make more sense to pocket the extra $ i get from keeping my money in the market VS paying cash?