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It's more than numbers (archive)

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

Posted by Mark on October 06, 1999 at 09:08:43:

In Reply to: Re: Stupid move. Here's why --> (NOT!) posted by Larry in TN on October 05, 1999 at 22:21:48:

: :
: 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).

Larry certainly makes several valid points. But I think many people (but not all) would be well advised NOT to raid their savings to pay for a car. Paying for the car out of your weekly/biweekly/monthly cash flow may result in a better savings discipline. If not, some people might not replace their savings, instead spending the paycheck on something else.

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