Quote:
Originally Posted by Fastfatdude
interest rates now in Singapore is low for car financing. its about 1.88%/annum.
with inflation goin at abt 5%, even if you did have money to buy the car outright, it actually makes more sense to borrow and reinvest the spare cash somewhere else...
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Sorry, I disagree with that. Paying cash is the safest way to go. Unless you have an insured account that can beat the interest rate of the borrowed money. Even then, things can happen; i.e. layoff, family crisis, etc. that suddenly requires a commitment of your cash.
I know that may seem counter-intuitive for many, but after 30 years out of college and being debt free for the past ten years, I can attest to the idea of "living within your means". A lesson sorely lost in our society today.
That's not to pass judgement on how anyone leads their lives, and I truly acknowledge that you have every right to do what you want within reason, but I'm a CPA with an MBA and I can attest to the notion that "sh1t happens", and you never know when.
That little sermon will do nothing but to piss a lot of people off, so sorry.
Lecture over!
That being said, I've got cash burning a hole in my bank account waiting to be exchanged for a new Z. I'll know by this weekend whether the search may extend into the Spring after bonus time.
Wish me luck.