When is money "free enough"?

[Fishindude77]

Anytime you borrow money, regardless of the interest rate, you put your personal finances at risk. I've always felt it is best to pay off loans as quickly as possible and avoid unnecessary debt.

[bjl584]

But you have $10+ thousand less in the bank. Unless you're replenishing the bank with that $300/month, it's a losing move.

Pay off was only $4000. I only originally financed $13,000.

[AJ444]

I had been debt free for 4 years but decided this year to get a new car at .9% for 36 months even though I could pay with cash. In the future I think I might go up to 2% because as someone else said it is close to inflation.

[Nutria]

Pay off was only $4000. I only originally financed $13,000.

(48 months, with 15 to go?)

Still, that's $4000 not in the bank (or invested) anymore. Did you replenish it?

[bjl584]

(48 months, with 15 to go?)

Still, that's $4000 not in the bank (or invested) anymore. Did you replenish it?

Yes. It's been replenished. That and then some. I paid the truck off over a year ago.

First payment was Aug of 11 and I paid it off Apr of 15, so I held the loan for 3 years 8 months. It was originally a 60 month loan. I could have paid it off within the first year, but I decided to keep the cash until the balance of the loan was small enough where I could pay it off and still have a "comfortable" amount of cash in the bank.

[TexasHusker]

For me personally the magic number would be 7%, though the closer to zero the better. I know I can earn 12% in my sleep, so I still have a 5 point spread.

[TexasHusker]

Same here. The problem with new cars isn't the financing. It's the depreciation issue.

Cars are like sofas and coffee makers. They are a cost. Certainly not what I consider an asset.

If you start thinking about cars as assets, it's a pretty depressing thought.

[LivingAlmostLarge]

0% is good but what matters is cash flow. If you can afford the 0% loan. If you have the cash and can then great. if you are borrowing even at 0% but you can't afford it, it's a problem.

[Nutria]

Cars are like sofas and coffee makers. They are a cost. Certainly not what I consider an asset.

If you start thinking about cars as assets, it's a pretty depressing thought.

Even though they both depreciate, to put a $15K, $25 or $50K car in the same class as a $50 (even $250) coffee maker is utterly ridiculous.

[TexasHusker]

Even though they both depreciate, to put a $15K, $25 or $50K car in the same class as a $50 (even $250) coffee maker is utterly ridiculous.

Si but they are a lot more fun than a coffee pot

[corn18]

Cars are like sofas and coffee makers. They are a cost. Certainly not what I consider an asset.

If you start thinking about cars as assets, it's a pretty depressing thought.

Seems you have done well with them as assets:

http://www.savingadvice.com/forums/general-discussion/83566-cheapest-car-i-ever-owned.html

[TexasHusker]

Seems you have done well with them as assets:

http://www.savingadvice.com/forums/g...ver-owned.html

An exotic / collector car is a different kettle of fish...

[tripods68]

If you start thinking about cars as assets, it's a pretty depressing thought.

I sold my WRX last year for almost the exact amount i paid for originally in 2012 ($21K with trade-in). In some way I broke even driving it for free for 3 years (excluding gas & maintenance cost). I hated the fact that my car $$ losing value. So i bought me a used $3K SUV with 170K miles on it that I still drive. Best decision ever! Hope to drive it for 2-3 more years and sell it for $2K grand once I'm ready to upgrade.

[corn18]

An exotic / collector car is a different kettle of fish...

Ahhh, so there are exceptions.

[TexasHusker]

Ahhh, so there are exceptions.

It's debatable - I don't know that I would ever put anything on wheels on my personal financial statement as an asset unless it was a "for show only" museum piece.

I've never had one of those so I can't say for sure how I would treat it on my balance sheet.