Debating on getting a used 2024 car for $38k or a new 2026 car with 0% APR for $58k. Used car I’d think of paying in cash. Currently I have that 38k in stocks though. Doesn’t it make sense to get a new car with 0% APR and keep all that money in the market for growth? I get having a paid off car is great but I also have 38k cash stuck in there. Leasing isn’t an option. Thoughts?

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Hard disagree with the above. You’re going to take a massive depreciation hit that will exceed whatever you’d plan to make up in the market with left over cash. Assuming same model, get the 2024 model, take less depreciation hit. “Always take free debt” doesn’t make sense when your $58k car is worth $20k in 4 years.

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There's free debt for buying used cars too...

Why don’t you get a used car loan? Shop credit unions for rates and I’m sure you can find something lower than 5%

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Always take free debt. Also you would have to pay cap gains.

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Didn’t even think about the cap gains tax on that amount. Good point.

What’s the interest rate if you financed the used car? Typically CPO’s have attractive financing options…

What’s your cash flow look like?…

What kind of car? A Subaru and the associated costs are much different than a BMW…

I would almost never recommend paying cash for a car if money is cheap… the depreciation is the depreciation… it’s never really an asset, whether it’s underwater or above water…

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