debt before mods bro
How do you figure that paying the car off is not the wisest financial move? If his rate is 5.3% with financing, I agree that’s not bad, but I don’t think any type of short term investment would really yield much more gain than that.
If you’re thinking stocks or funds, sure you can get a bit more gain but there’s significant risk, plus that’s for a longer term…
But if he was NOT to pay it off and put that money into, say a savings account or high rate money market account, he wouldn’t even get 4% these days, especially the way the Fed lowered the rates.
So why is it not wise to pay it off in full?
My advice is to go use 90% of it towards your payment, if you really must buy yourself something, do that with the remaining 10%, that’s still a nice few hundred bucks.
yeah bro thats what i was figuring… ask much as i would love to blow all of it on my car and boost it i would much rather pay the car off in half the time and then boost it when i own it free and clear… ill prolly end up taking 1500-1700 and put cams, chip it and maybe a CF trunk or something and then take the rest of it and put it down on my loan
anyways thanks for everyones opinion
I’m particularly good at investing so perhaps I am not the norm, I easily could have wrote a check for my car, but I put enough down so I have a buffer and will never be upside down and financed the rest at just over 5%, I can easily make 60% a year, you do the math, even at half that the spread is significant enough to make it worth while to finance. That’s strictly using mutual funds, I don’t day trade individual stocks.
I am semi-retired, now I’m private equity investment banker, when I work I bill my labor at $10k+/hour, I have managed to more or less retire by the age of 26, I think I’ve figured a few things out most haven’t. That said I would strongly advice against paying off the car early, unless your upside down on it, then only enough to bring you out of surety. A car and a house are two of the easiest ways for a non-professional to get a loan and put themselves in a “benefit to borrower” position, interest rates have been very low for a long time, it has been and will remain easy to make twice normal mortgage and auto loan rates. The problem is most lack discipline to actually do this. That’s my story and I’m sticking to it.
Never thought I’d see a finance discussion on this forum.
There’s a smart answer (invest it) and a fun answer (blow it on the car). Spending money on cars is never a good financial decision.
This is what I do all day, this thread feels like work. ;D
5-6K… you say?
well i think first off, you should deffently go with the 4300, hooker. then you got roughly 700-1700.
thats where it gets interesting, you either
A. Get mods
B. Double visions
C. Give money to vlad for the paper.
D. Buy me a new sunroof latch.
OR you take that 5-6K and make your own EmpiresClubVIP.com and get even more money…
lol, shitty examples, but yes debt before anything else. or just save it, in a savings account.
1-3% is lame. Better uses for 5-6k for someone our age.
:nod
Can’t put it in the stock market because your buddy GWB fucked up our economy… :lol
LOL Take it to AIM, hippie boy.
Of all the wealthy people in the country, real estate produced the majority of them. Do that.
bingo
There’s always money to be made, last year was a record breaking year for me and this year is off to an even better start.
You’ve done well for yourself and it’s obvious you’ve “figured a few things out most haven’t”. Hell, you figured things out I probably will never know, and more power to you… But that’s just it- I think a person with your ability to get the returns you have been able to, and as consistently as you have been able to is the exception, not the rule.
My advice was for the average young person who is not certain what to do with that cash. For anyone else who is 100% certain they can make a killing in investments, 4%-5% may be peanuts so you may want to put your money elsewhere.
But hey, some prefer safe and sure over ballin’ on 30s one day, hitting soup kitchens the next.
i was going to hit you up for some advice, but I dont think I can afford said advice lol