I feel like I’m doing my math wrong so I just need to make sure I’m thinking about this right. I’m considering buying a new car and have two options: 1) Buy straight up for $55,000 and get $7500 cash back or 2) finance for 6 years at 0% APR.
If I take the 0% offer and keep that money parked in a plain old savings account for 6 years at an average 3% (earning 5% now but assuming it will fall over the next few years) I earn $10,000 in interest.
If I buy straight up and take the $7500 cash and add $775 per month (the loan payment I would have been making) I would earn $4,300 in interest.
Here’s where I’m confusing myself. Should the 0% calculation include losing that $775 payment per month? Or not getting the $7500 cashback? I feel like something is wrong in the first calculation.
Submitted March 08, 2024 at 09:37PM by TacoGoose https://ift.tt/VG6KOby
