-hh
I hate front wheel drive, send most torque to the rear, please wrote:

I hate front wheel drive, send most torque to the rear, please
On 3/10/14, 0:43, -hh wrote:

-hh
"If you keep it to yourself, you are buying it for yourself. But if you tell the world, you are buying it for them" ... what are peoples' opinion for what the 'Go/NoGo' break point is for interest rates today for what they believe is worth taking, so as to leave one's cash invested?

IE, if the offered rate is below X%, then take the rate; otherwise just pay cash...what's your X?

I hate front wheel drive, send most torque to the rear, please
I'd be borrowing $10k tops at 12% tops if I were in the states.

-hh
So what you're saying is that even if you had the cash, 12% is a good enough rate that you would hold on to your cash and take out a 12% car loan?

FYI, the implications of this are that you believe that you can do better than a 12% return (Net Return) by holding on to the cash to invest.

I hate front wheel drive, send most torque to the rear, please
Probably it's better to punt those 10k into a secondary loan on the house as those are well under 12% but that's just me.

-hh
Yes, a lower rate is always better...but that's not the question.

I hate front wheel drive, send most torque to the rear, please
If you have $10K lying around why borrow? You can get something 2-3 old in a decent shape.... There's really no reason to compare...

-hh
Oh, I'm not comparing at all. Just trying to get opinions on "buy vs finance" given the state of the market (financial markets, not vehicular). For example, I don't see any low risk investment vehicles for which I can get a 12% Net return on liquid assets, so I'd personally pass on a 12% loan rate and just pay in cash.

What I'm undecided on (and thus, soliciting comment) is how much lower would a rate need to be before leaving one's money 'at home' and using someone else's. For example, if not 12%, then how about at 8%? And if not at 8%, would the rate need to be only 6%? And if not 6%, would it be 4%? And so on.

I hate front wheel drive, send most torque to the rear, please
as your situation is probably drastically different than that of a guy next door.

-hh
Everyone is always different, which is why I've slimmed down to only about interest rates.

I hate front wheel drive, send most torque to the rear, please
Someone just needs to crawl from place A to place B on the cheap, but Nashton would insist on doing all the ritz and there is just about anything in between. YM truly MV.

-hh
To his (slight) credit, that he financed got me reevaluating my baseline assumption of just paying cash and checking into interest rates. I've found one offer that looks good enough to consider taking, but wanted to get feedback via the above question before deciding.

I could state the question as "I found rate X%, good/bad?", but asking what people consider their go/nogo value to be provides greater insight, as instead of attribute data (yes/no), it is variable data (N%).