In Reply to: huh? posted by MK on October 05, 1999 at 22:26:48:
: Are you saying you would drop $40K on a car instead of using that money instead to invest in stocks or a business, or whatever else?
Yes. Actually, $35k which is what our 323i will cost after tax, title, etc., etc. The money's sitting in the bank right now waiting for the car to arrive.
: Sorry, but I fail to see how dropping $40K at once on something that doesnt return my money back makes sense...
Because your after-tax, risk-adjusted rate of return is less on the investment than the loan will cost.