Originally Posted by Zero757

Just thinking...If the recent market adjustment reduces your portfolio by $200K, you probably have a sizable portfolio which will likely go back up again over time. I have seen these fluctuations over the last twenty years and with a long enough horizon and a balanced portfolio a little leverage can work in your favor. Instead of pulling money out, borrow it at a low interest; a recovering portfolio will make up for the low cost of the loan. As another example, if I had $200K sitting around in cash ear marked in my portfolio for a car right now and I had the opportunity to buy that $200K car, I would not spend the cash, but rather borrow the money for the still very low interest rates (1.9% +/-). My $200K in cash would be ready to pick up a few undervalued shares in the near future in anticipation of recovery and likely make up more than the 1.9% it costs me. Or, if the feds raise interest, you can pick a nice AAA Muni bond at 3-4% tax free, covering the cost protecting the principal and even making you a little money...Is that a bad thought? I'm sure there are smarter, real and actual finance guys to chime in...

Originally Posted by Waddi

I guess everyone has different priorities, but my GT3 cash is sitting in cash fund earning ~5%, no ways I would risk my car money in the markets, I have other money working away at that. And yes, the car will be a cash purchase, that’s the deal I made with myself a few years ago.

Originally Posted by rodneyr

You guys are coming up with good points. I am sure there is a creative way to raise the $200K from my portfolio to purchase the car. I know my financial advisor did not want me to sell $200K in equities because of the capital gains, other reasons, and was looking at other options like being discussed here. Part of my original justification to my wife was the account was and is still up a lot so it was like free money. Also, the value of the car will not go down much in the near-term so I am trading one asset for another asset. If I am down over say $100K+ (even though I still have profit) it will be a more difficult sell to my wife and more difficult to for me to justify purchasing the car.

Originally Posted by rodneyr

You guys are coming up with good points. I am sure there is a creative way to raise the $200K from my portfolio to purchase the car. I know my financial advisor did not want me to sell $200K in equities because of the capital gains, other reasons, and was looking at other options like being discussed here. Part of my original justification to my wife was the account was and is still up a lot so it was like free money. Also, the value of the car will not go down much in the near-term so I am trading one asset for another asset. If I am down over say $100K+ (even though I still have profit) it will be a more difficult sell to my wife and more difficult to for me to justify purchasing the car.

Originally Posted by GT3 Mike

Its funny, everyone is waiting for a tanked economy to buy cars when in reality the last thing " they " will be buying is cars.

If interest rates rose to 10% I'd have every penny I could scrounge up sitting in the bank and not buying a GT car ( or any car ) !

Originally Posted by GT3 Mike

If interest rates rose to 10% I'd have every penny I could scrounge up sitting in the bank and not buying a GT car ( or any car ) !

Originally Posted by WenigerAberBeser

I hope no one’s taking personal finance advice from a car forum.

Originally Posted by WenigerAberBeser

I hope no one’s taking personal finance advice from a car forum.

Originally Posted by PTS

Odd comment for this subforum, lots of financial professionals and smart money guys in here. Also a safe assumption that majority of those shopping for $200k+ cars are at minimum financially savvy enough to understand the different avenues to purchase and opportunity costs associated with each. I'm not saying I'd personally be searching for information/wisdom here to make my decision, but this is certainly not a bad place to discuss these things amongst other people going through the same decision process

Originally Posted by shrimp money

It’s not the worst place. There are some really smart and Uber wealthy people on this forum.

Nady was discussing portfolio loans on his IG last week.

Originally Posted by WenigerAberBeser

it’s fun to discuss, sure. But everyone has a unique personal finance situation, so what works for one may not work for others, that’s all I was saying. Taking out a massive loan at age 60 vs 35 has different implications just like someone who is a HENRY vs Net Worth of $20m, etc. Sorry to disrupt the party

Originally Posted by AlexCeres

that’s my point. Most of these people haven’t actually run the numbers and are stuck in the mindset of “all debt is bad, must avoid even if I pay an extra 35% in taxes”. Sorry, the cash only crowd needs way more perspective.

at 3% interest, you could float the entire car for only 10% of msrp. If you can’t handle +/- 10%, then damn, son you’re run close to the wire. A HENRY who decides they can afford $220K instead of 200k is perfectly situated to use an auto loan to buy the car.

this is a car forum. We like to see people get in cars.

Originally Posted by WenigerAberBeser

Dude, we get it… you love credit, but guess what, not everyone wants credit or needs credit to buy a car… doesn’t mean they don’t know what they are doing. Try to have a bit more perspective.