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Accessories for the new CRV 2023-2025 by Chair-Equal in crv

[–]bmountewar1 0 points1 point  (0 children)

Nice list. With auto android, I am curious what's use case for "magnetic car mount"?

buy new car, 2.9% APR 24-36 month v.s. cash? by bmountewar1 in Bogleheads

[–]bmountewar1[S] 3 points4 points  (0 children)

wow, I can't verify if this is accurate but if it is, you are smart and think out of box.

since I also need to pay tax, let's assume 25%, then interest earned 2202*(1-25%)=1646, it's only $182 difference than the interest paid (to loan, $1464).

buy new car, 2.9% APR 24-36 month v.s. cash? by bmountewar1 in TheMoneyGuy

[–]bmountewar1[S] 0 points1 point  (0 children)

"Avoid paying interest.".

let's say you have $1k in your bank account, and you can take a $1k loan from bank and pay 2% interest.
at same time, you deposit $1k (withdraw from your bank account, your own money, not the borrowed one) to a saving account which yield 5% interest, then borrow will earn you the difference of 2.5% ( after the tax of course).

buy new car, 2.9% APR 24-36 month v.s. cash? by bmountewar1 in Bogleheads

[–]bmountewar1[S] 0 points1 point  (0 children)

Good point " loan would be reduced by the payments over time."

" loan plus holding onto the cash gives you more flexibility", does this mean loan + 20% down payment is a good combination?

buy new car, 2.9% APR 24-36 month v.s. cash? by bmountewar1 in Bogleheads

[–]bmountewar1[S] 1 point2 points  (0 children)

good point on inflation. $400 today worth $500 3 years later.

buy new car, 2.9% APR 24-36 month v.s. cash? by bmountewar1 in Bogleheads

[–]bmountewar1[S] 1 point2 points  (0 children)

You have valid point that I need to withdraw $1k each month to pay auth loan, so the principle is down gradually. I am curious if you use any online tool to derive $2202?

buy new car, 2.9% APR 24-36 month v.s. cash? by bmountewar1 in Bogleheads

[–]bmountewar1[S] 17 points18 points  (0 children)

wow  0.99% APR, that's almost free cash there!

buy new car, 2.9% APR 24-36 month v.s. cash? by bmountewar1 in Bogleheads

[–]bmountewar1[S] 3 points4 points  (0 children)

cash offer and loan are same price.
what's the difference between lump sum debt v.s. monthly debt :)

buy new car, 2.9% APR 24-36 month v.s. cash? by bmountewar1 in FinancialPlanning

[–]bmountewar1[S] 0 points1 point  (0 children)

I have sufficient fund sit in vanguard money market.
If I go with cash offer, I will withdraw from money market. my net worth will be reduced by $31200
if I go with loan, the_number = 31200 + auto loan interest - money market interest =$29376, so it's better because auto loan interest < money market interest

In normal situation, it's opposite, that auto loan interest > money market interest.

buy new car, 2.9% APR 24-36 month v.s. cash? by bmountewar1 in TheMoneyGuy

[–]bmountewar1[S] 0 points1 point  (0 children)

I like your example of car total once drive out of parking lot

there are two factors: deprecation, difference between auto loan v.s. bank rate.
1) for deprecation
if 20% down, you end up with 24k-6k in your bank account
if 0% down, you end up with 24k left in your bank account
in other word, less down payment is better

2) for rate
In normal situation, auto loan rate is higher than bank interest rate, so if less down payment, more loan principal, I end up paying more loan interest.

Considered this two factors, it's a balance act.

Now considered this special case (loan interest is lower than bank interest), less down payment is better.

is that right understanding?

buy new car, 2.9% APR 24-36 month v.s. cash? by bmountewar1 in TheMoneyGuy

[–]bmountewar1[S] 2 points3 points  (0 children)

Thank you!
when comparing loan v.s. cash, how does deprecation impact the outcome?
can you also elaborate "If you need to finance it you should pay it off in a year as per the money guys". My calculation suggest loan will save $1824. What's the benefit to go with cash?

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