In Reply to: Re: I'm sorry. I assumed you would know what posted by Do your math over. on October 06, 1999 at 00:34:41:
: Using my number of doubling 35K over 4 years at 50% tax (hence 17.5K profit) puts me 12k in the black after subtracting the cost of financing over 35 4 years at 7%. I dont know what you were calculating with.
I'm really not sure why we're having such a hard time communicating.
Yes, if your money happens to earn some fantastic rate of return it is possible to come out ahead by financing. What I've been trying to tell you is that if you run the numbers you'll find that you'd have to achieve an unrealistic rate of return in order to do so.
There's nothing subjective about this. Plug in your tax rates and the rate you can get on a loan and we can determine the exact break even point. Provide some numbers and I'll do it for you.
Expecting an 18% rate of return is not realistic when the market has historically returned only 10%-11% and most investors underperform the market in which they invest.
This thread isn't about whether or not someone should finance a car. It's about people telling Ricardo that he's stupid for paying cash for his. If he's stupid it's because he thinks people will respond positively to his arrogant and condesending posts.