(13-04-2013, 09:23 AM)CY09 Wrote: [ -> ]"96-month car loans wreck your wallet"
http://www.marketwatch.com/story/96-mont...2013-04-12
She's advising against 8 yr car loans but in sg we were there!
Ours was actually worse - 120-month loans (10-year loans) with 0% downpayment (100% financing).
Really cannot imagine the amount of interest paid by then......
I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.
(13-04-2013, 09:49 AM)NTL Wrote: [ -> ]I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.
In an asset inflation situation, anyone who borrow and consume first wins.
(13-04-2013, 09:49 AM)NTL Wrote: [ -> ]I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.
If your friend is paying an average of 4-5% effective interest rate on the car loan, then she must be saying that her investments can average a better return than that over the medium-term. So from this I can conclude that your friend must be a very astute investor!
(13-04-2013, 06:02 PM)Temperament Wrote: [ -> ]
Cursor over it. Right Click. Select "view image"
Then enjoy or drag looking on the the images/pictures.
Shalom.
[/quote]
Just for fun; my favourite picture is the man barely floating with a piggy bank and a shark right underneath him. If we are not careful we may ended up like him.
(13-04-2013, 01:29 PM)opmi Wrote: [ -> ] (13-04-2013, 09:49 AM)NTL Wrote: [ -> ]I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.
In an asset inflation situation, anyone who borrow and consume first wins.
Have a look into the historical era AFTER the asset inflation situation.
(13-04-2013, 03:03 PM)Musicwhiz Wrote: [ -> ] (13-04-2013, 09:49 AM)NTL Wrote: [ -> ]I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.
If your friend is paying an average of 4-5% effective interest rate on the car loan, then she must be saying that her investments can average a better return than that over the medium-term. So from this I can conclude that your friend must be a very astute investor!
While I do not know her investment return like, I do believe that she had did her calculations before taking on such a proposition.
(14-04-2013, 09:08 AM)NTL Wrote: [ -> ] (13-04-2013, 03:03 PM)Musicwhiz Wrote: [ -> ] (13-04-2013, 09:49 AM)NTL Wrote: [ -> ]I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.
If your friend is paying an average of 4-5% effective interest rate on the car loan, then she must be saying that her investments can average a better return than that over the medium-term. So from this I can conclude that your friend must be a very astute investor!
While I do not know her investment return like, I do believe that she had did her calculations before taking on such a proposition.
Wouldn't indexing outperform 4-5% over a 10 year period easily?