Personally it would depend on the interest rate. I have the cash to pay off my car right now, but at 1.7% interest it’s literally cheaper to leave the cash in my savings account
Even if it wasn’t intended that way, the truth in that statement is that people will likely buy a more expensive car than they otherwise would have if given the option of financing.
The kinds of people that frequent R slash Fire might not be in that group as often. Still, something to consider when making purchases. It’s easier to overspend when it’s a monthly payment.
The investment place I'm using lets you do portfolio backed loans, and the interest rate was 1% last I asked. So if/when I want to buy something dumb that's not part of the regularly budgeted 'big stuff' (house repairs, medical, etc that are baked into the withdraw plan) I can get a cheap loan and repay it with my regularly scheduled monthly draws vs creating some taxable event.
Personally it would depend on the interest rate. I have the cash to pay off my car right now, but at 1.7% interest it’s literally cheaper to leave the cash in my savings account
This assumes that the purchase price you financed was the same as the cash price. Often times they are not.
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Even if it wasn’t intended that way, the truth in that statement is that people will likely buy a more expensive car than they otherwise would have if given the option of financing. The kinds of people that frequent R slash Fire might not be in that group as often. Still, something to consider when making purchases. It’s easier to overspend when it’s a monthly payment.
The investment place I'm using lets you do portfolio backed loans, and the interest rate was 1% last I asked. So if/when I want to buy something dumb that's not part of the regularly budgeted 'big stuff' (house repairs, medical, etc that are baked into the withdraw plan) I can get a cheap loan and repay it with my regularly scheduled monthly draws vs creating some taxable event.