Let's say I have enough liquid cash and enough income. If I want to buy a new car, does it make more sense to pay cash on the spot or take out a loan and try to invest the cash over 5 years?

I'm very debt-adverse, a by-product of being fortunate to never fall into debt and frugal Asian parents. My income is such that I can easily afford monthly payments. My liquid cash is currently 30k but let's say I can raise up to 45k before I'm ready to buy in about 6 months.

I want to buy new so I can get exactly the car I want and I plan to keep it for 10+ years. What makes more financial sense? Pay cash and remain debt free? Or take out a loan and invest in a fund that earns more than the loan interest rate?

Submitted February 12, 2017 at 01:04AM by BaryOwen http://ift.tt/2lC5Jvg