Thanks

Ok thanks

Thanks

How about changing the interest rate once the contract is initiated. What if rates drop by the 3rd or 2nd year, how can I get a lower rate on my current loan

Thanks

Do the finance math as well

It's a guaranteed return with no additional effort or gambling on price fluctuations. Yes, people do that.

Don't be rude here.

You may be interested in our regional index.

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> its going to be fairly the same as if I were to finance the car

How exactly? $16,000 for the lease, plus a $14,000 residual, plus interest on the car note means you would likely pay $33,000 or so for a car you know to cost $23,000…

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This is a mild fun fact about the Roth 401(k)/IRA. It’s not ROTH as if it is an acronym, but Roth because it’s named after former Senator William Roth.

Also, Roth isn’t a noun. It describes a type of tax advantaged contributions. You likely meant Roth IRA.

Here's a link to the PF Wiki for helpful guides and information.

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I love the flowchart! Here's the wiki page with more context and information.

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Follow the flowchart.

My generic advice:

https://i.imgur.com/lSoUQr2.png

Here is the flowchart from the r/personalfinance subreddit’s Prime Directive. If you follow that, you will be ahead of almost all of your peers.

Stop by the sidebar to see the Common Topics, which include basic money handling and investing.

You don’t need to talk to anyone or buy some random book to do this. You have all the tools right here.

It's always a great time to invest! I'm assuming you have a decent emergency fund, so a taxable account would be the next step. I suggest low cost, tax efficient index ETFs that are different enough from what you hold in you other accounts to avoid wash sales.

Your car loan is under 4% which is low enough that you can just make the payments if you want to invest instead. You can also split the difference - a little extra to the car loan, a little to investments (easier at a brokerage that allows for fractional shares) and even a little extra to savings.

The other poster did the math on it and you wouldn’t owe more than $10k on it via financing. Also, if you use a local credit union financing, you might be able to get 6-8%.

A big crash of the used market would still make it worth $12-14k used (instead of $20k).

There is almost no scenario where leasing makes more sense for this specific set of circumstances.

Thanks, that's an interesting idea. So it's a matter of the ROI via bonds/HYSA or the return once the loan is paid off? My payments are $357/mo, but once the loan is gone those funds will be available for something else. There is also the unknown of how long interest rates will remain this high.

Treasury bonds are paying more than 4% without the risk of the stock market and you get to avoid some taxes on the interest. High yield savings accounts are in the same range and even after taxes are probably higher than 3.48%, also risk free.

You're not going to get rich off this level of arbitrage though so if it gives you peace of mind to pay down the car, do that. Long term optimization would probably be to keep the loan as is and make some diversified ok investments.

Even before car prices went completely nutso, Toyotas were pretty good about holding their values. And at the end of the day, at least you have an asset worth something.

If it helps make it more clear why everyone is recommending you not go through with a lease, here’s a mental exercise. Purge the word lease from your vocabulary. The word you’re looking for and will be using is now “Renting”. That’s why it’s such a bad idea.

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This seems expensive. You should use the website leasehackr.com for check the value on this lease and see what others are paying.

When my car was totaled I couldn’t get it repaired and I drive literally all over the state for my job and used cars were heavily inflated. Like cars same make and model were actually more expensive then a new one. Before this vehicle I never bought new but my circumstances were very different and didn’t have the luxury of time to shop around to find a good used vehicle and as I drive so much I needed to make sure it was a quality car and wouldn’t break down after purchase. Trust me I didn’t want the payment and still don’t but I had to buy a car to keep my job so I did what I had to do.

When my car was totaled I couldn’t get it repaired and I drive literally all over the state for my job and used cars were heavily inflated. Like cars same make and model were actually more expensive then a new one. Before this vehicle I never bought new but my circumstances were very different and didn’t have the luxury of time to shop around to find a good used vehicle and as I drive so much I needed to make sure it was a quality car and wouldn’t break down after purchase. Trust me I didn’t want the payment and still don’t but I had to buy a car to keep my job so I did what I had to do.

Sorry I wasn’t clear, from their post I’m not sure if they’re in the US. They might well be, they probably are. But I don’t think it’s clear.