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Re: Stupid move. Here's why --> (NOT!) (archive)

[ Follow Ups ] [ 3-series (E46) Message Board ] [ Msg. Board FAQ ]

Posted by Larry in TN on October 05, 1999 at 22:21:48:

In Reply to: Stupid move. Here's why --> posted by MK on October 05, 1999 at 22:04:45:

: Car is not a good investment. You lose $5K the moment you drive it off the lot. Then the first 3 yrs it depreciates the most.

The car will depreciate no matter how you pay for it.

: Why drop $40k on it, when you could invest that money into something that will yield a greater return??

Because when you run the numbers you'll find that paying cash for a car is the better move.

First take your expected returns and adjust them for income tax. Your rates will vary. Next, take your after-tax return and adjust it for Beta (risk).

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