[quote=Essbee][quote=bearishgurl]
Ren, I don’t really care about any Piggs’ finances here. It’s not only me, but that old, crotchety Suze Orman would actually advise you not to pass go or collect $200 if you were carrying vehicle loan(s).[/quote]
0.9% financing was too good to ignore…[/quote]
This is all the more reason why one should pay them off first before making more volatile investments such as distant rental properties. Those 0.9% interest deals are no picnic for the long haul because they usually MUST be paid off in 24 months or all the “deferred interest” of a 36, 48 or 60 month loan gets tacked on and the loan recast (if the borrower is not too far behind in payments).
In other words, if a new vehicle buyer with an over 720 FICO score borrows $30K at 0.9% interest at 24 months, the monthly payments would be a hefty $1251 mo.
$1251 on just ONE vehicle is a BIG extra payment every month, even for households with annual incomes over $150K. It’s enough to put a dent in the ability to service debt on and unforeseen repairs for or damage to out-of-state rentals, IMO.
The borrowed amount of $30K is for discussion purposes only and I’m not sure if a 3.4% auto loan can be taken out everywhere for those varying lengths of loans on new vehicles.
