Thread: Trade in value
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Old 04-15-2018, 11:05 AM   #19
twindman
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Join Date: Apr 2006
Location: Mesa az
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Quote:
Originally Posted by BB_TX View Post
Definitely true. But you still lose even if you pay cash and sell/trade after 3 years, just not quite as much. Buy for $60,000 cash and sell/trade 3 yrs later for $30,000 and you lose $30,000. Buy at $60,000 with $5,000 down and 6 yr finance, then sell/trade after 3 yrs for $30,000 and you lose $30,000 plus what you paid in interest for 3 yrs.

Expensive proposition, not for the faint of heart.
I got a 6 year loan for around 4.2%. It was marginal as to cost effectivness. I figure if I pay cash, I lose the investment income/appreciation. But I think I have made at least 5% over the last 12 years, so using someone elses money makes sense to me. (However, a rate of 3% would have been better!!)
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