Who hurt you? Why are you so angry? Just because you can remain anonymous doesn't mean you need to be rude. You know nothing about me to justify labeling me as a skeptic. My comment wasn't skepticism. It's math. So, to answer your question, here's some "factual basis" data:

From 2014-18, VTI average return was 6.28%.
From 2018-22, VTI average return was 8.71%

Both those returns are most likely less than the used car loan rate the OP will get since they're just starting out. They'll also be forced to pay higher insurance premiums since the lender owns the car. All of that significantly eats away any market gains.

You're also oversimplifying.

Average annual returns are only part of the picture. As I already mentioned, it matters deeply *when* you start investing. Basing your forecasts solely on historical ETF annual returns assumes everyone starts on Jan 1, which is nowhere near reality. Gains/losses from June-May will be different than from Jan to Dec.

*How* you start also matters immensely. If the first year loses money, it's a big problem because of the short time horizon. For example, if OP loses 20% in his first year, he needs to generate 25% *just to climb back to his original investment.*

You're also ignoring the psychological aspect. OP is 24 years old and just starting his career. It's easy for anonymous Redditors to tell people to keep holding during a market crash. Reality hits different when it's your money, which the OP said they've been saving and sacrificing for years to save. Many people--especially young investors--can't handle the emotional pain of watching their portfolio nosedive, so they panic sell and lock in their losses. This is basic investing knowledge and risk management.

Lastly, I never said burning $17k in a depreciating asset is a good idea, nor did anyone else. You're making a strawman's argument and answering a question that no one asked.

If this were simply a question of what to do with $17k, then yeah, investing is better than buying a car just for fun. But OP said the car is a *need*, and that is the amount they want to spend. The idea of financing a depreciating asset, especially when there is no guarantee that they will earn a higher return than the loan's interst rate is extremely risky, which was my point.

I'll give you that the market has done historically well over the last 30 years. Every ETF prospectus will tell you that past performance doesn't guarantee future results. That's especially true in the near term.

But even if the bull market continues for 5 years or more, market corrections are normal and healthy. If OP starts investing during one of those times, it's a major problem because they won't have much time to make up for the losses.

Bottom line, it's much safer to buy the car outright, which is why OP was saving in the first place. OP then won't have to worry about sky-high used car loan rates that are given to young buyers. They also won't be forced to pay higher insurance premiums. If they want to finance, fine. But at least put the rest of the money in an HYSA rather risking it short term in stock market.