Sep 17 2011, 01:34 PM
QUOTE(b00n @ Sep 17 2011, 01:21 PM)
Let me be the devil.
We're always on the assumption that we're going to sell the car thus the "car value" depreciation that we always talk about when it comes to car. What if we don't intend to sell the car??
But remember, we're also always talking about depreciation in currency. And since interest rate is fixed, wouldn't paying RM1000 monthly loan repayment for example is actually paying lesser when it comes to depreciation of money at later years.?
heheh - bro b00n, same wave-length, buy and use until... We're always on the assumption that we're going to sell the car thus the "car value" depreciation that we always talk about when it comes to car. What if we don't intend to sell the car??
But remember, we're also always talking about depreciation in currency. And since interest rate is fixed, wouldn't paying RM1000 monthly loan repayment for example is actually paying lesser when it comes to depreciation of money at later years.?
I think the bottom BOTTOM line would be the cost of loan/HP (cars are straight line methink, gotta convert to effective % per annum compounded) VS whatever opportunities that can be presented during the life time of the loan - as a fellow forumer stated earlier somewhere in this topic/thread.
Mind U, if the difference is less than 2%, i think i'd buy cash (assuming $120K is less than 3%-5% of my investment assets) - one is FOR SURE (loan interest), one is probability-based (investments/trades).
Just a thought
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