Quote:
Originally Posted by bcrdukes
Wait, are you talking about a car, or real estate?  Because how do you get a return on investment on a new car? I hope we're not talking about aircooled Porsches or BMW M cars. |
Nop. Just simple math. Let’s say you have 40k in cash to buy it out with 1500 discount vs finance it for 72mth at low interest rate of 0-1%.
By putting that 40k, or 38.5 after discount into an investment that guarantees 2% or higher return, the financing route works out cheaper because once you add the potential return generated by that investment (as opportunity cost) to cash buying route, the sum or your actual final cost is greater(43k or so) than 40k+finance charges (41.5)
Math is just off my head. Give or take a few hundred I think.