Dear all,

Let's say you have 120k in cash and would like to buy a new car. What is the best strategy financially?
- To buy the car with cash?
- To pay only minimum amount required?

In the latter scenario, would it be better to stretch the number of year to maximum (9 years) or make it shortest (1-2 year)?

My calculation model shows that paying the minimum amount required and stretch the loan to maximum number of years is the most profitable. But advices that I get from the Internet is to put as much downpayment as possible.

I am confused. Please enlighten me.

Thanks!!

^ Do you have any calculations to share with us?

looks loke everybody is giving the same advise of having our loan shorter

can someone share the calculations with us?

thanks!!

yes, it happens in Agartha or Kingdom of Saguenay.
but never heard about such taxes here.

^ that is assuming your cash sits under your bed (you can't hide 120k under pillow without getting any attention).

if we can generate higher return with that cash vis a vis the loan interest, am i right to say we should pay minimum amount and extend the loan period to maximum?

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Added on September 17, 2011, 3:21 am@EquinoX
it seems that we have the same wavelength.

This post has been edited by new[x]: Sep 17 2011, 03:21 AM

Thank you everyone for your contributions in this thread.

I agreed with Edyek's conclusion and decide to go with the latter option.

Cheers.