Question for the Money Doctors

Question submitted on Jul 23, 2020.

Question

Interest rates for cars are low. Should I pay cash for a $35,000 car, or finance it, and invest the cash? Thanks.

Answer

I suggest if you can return higher after inflation and taxes in an investment then the interest rate take the loan and invest. As these times are in a new normal, I would hold on to my cash and take a loan normally but sometimes paying any interest expense does not make any sense.

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