TSLA Pilot
Active Member
Correct. Many say something along the lines of "I can get an interest rate of 5% on the car and then invest the same cash in the market and make 10% which is a 5% profit" and think this is sound investment advice. What it doesn't account for is market corrections which we're due for. It also doesn't account for recessions or other unforeseen issues and many would also say we're due for some of these negative downturns as well. The only real debate is just how significant it will be. I digress. The point is that this is a risky proposition and most don't factor the potential risk associated with this advice.
The "many" used previously was done intentionally because "many" people also live paycheck to paycheck due to a history of poor financial decisions that seemed wise at the time. The few in this country that are truly wealthy don't do things like the scenario I painted in the previous paragraph. The tend to not finance depreciating items and avoid buying them entirely if possible.
Sure, you can risk it but many people have done this and failed the moment a hiccup comes along. If you can live life worry-free w/o any payments and then use your income for investment 100% free of monthly financial burdens it opens up a whole new world of opportunities. It frees you and allows you to enjoy life more rather than stressing about payments and bills and how you're going to make those obligations. This approach is priceless in terms of your overall mental health and long-term life happiness.
Right. I see.
So instead of financing the eight Model S's we've purchased since 2013, we should have paid cash.
Really?
Then how would we have become Teslanaires almost twice over?
Sometimes internet financial advice is worth what you pay for it: nothing.
Use your credit union and cross shop others to get the lowest interest rates. When money is cheap and on "sale," buy money . . . .