When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.
If I were the OP. I would finance the car out as far as possible. Being he is an elderly gentleman and already retired 13 year the lease on life may be less than the the duration of the loan. Would in fact be a win win situation. A Thelma and Louise moment.
It's all relative. People actually told me I was insane for trading a four-month-old 991S in for another because of a poor color choice on my part. I took a nasty hit, but it is what it is. Move on and enjoy
I remember watching my 7 figure stock account falling by $50k per day back in the dot com crash. I thought “Dang! That’s like losing a new Porsche in one day.”
Moral of the story, take some money out of the market when things have gone well. Spend it on something you like or need.
It's all relative. People actually told me I was insane for trading a four-month-old 991S in for another because of a poor color choice on my part. I took a nasty hit, but it is what it is. Move on and enjoy
What did that color change cost? $20k?
Yes, it is relative: that’s why this thread has so much meat. Twenty thou only last 20 seconds of drag racing a Top Fuel Car. But it can also feed about 400 school girls in a Kenyan refugee camp for a year. At some point, when we make comparisons of extremes, it starts to look ridiculous.
I remember watching my 7 figure stock account falling by $50k per day back in the dot com crash. I thought “Dang! That’s like losing a new Porsche in one day.”
Moral of the story, take some money out of the market when things have gone well. Spend it on something you like or need.
In the housing crash I remember people saying their best investments turned out to be brand new cars because the cars would only lose ~30% of their value that year...
In buyer's situation, I'd finance the car for 60mos and invest the cash. Buy some REITs and oil trusts (REM, SJT, MTR, etc) and use most of the carry earned to pay for the car. As an investor, a little leverage is your friend. Buy car, buy stocks, short the dollar. Stay in a better liquidity position. You are in the financial position where you can make leverage work for you.
Came back to this thread to say the car is now due 12/15, two weeks ahead of schedule. The market's been quite good for me since I started this thread 4 months ago, I'm currently up more than the net cost of the car after my trade in.
Originally Posted by Bill in Boston
In buyer's situation, I'd finance the car for 60mos and invest the cash.
I think I addressed that a while back, but that's not something I'm going to do for a variety of reasons.
First, there's the knee-jerk response. I don't have any debt, and I don't like the idea of having a monthly payment for anything.
Second, despite how well the market has done for me this year, 5 years is a short enough window that I don't like investing funds earmarked for expenses. Low-risk vehicles (bond funds, etc.) are returning a lot less than the 3.5%-4% interest on a new car loan, and higher-return vehicles have the distinct possibility of returning less than 3.5% or even going negative. If I'd financed a car in 2007, before the credit crisis, and invested the proceeds for 5 years, that would have been a net loss.
Third, IMHO the market is overvalued right now. I'm reluctant to pump more cash into it, particularly leveraged cash. And yes, I know that means my encouraging gains from this year may evaporate! It doesn't keep me from feeling good right now, though.
Third, IMHO the market is overvalued right now. I'm reluctant to pump more cash into it, particularly leveraged cash. And yes, I know that means my encouraging gains from this year may evaporate! It doesn't keep me from feeling good right now, though.
I know investors are not supposed to Time the markets, but I agree. We should be pulling some money out right now as a hedge and waiting for a dip to reinvest.
11-03-2017, 08:40 AM
