Hi everyone, first time poster here. Here is my dilemma:
I have a very reliable 2011 Hyundai Elantra that I am leasing and have the option to buy the vehicle in another month for around 15K. I am slightly over the allotted mileage of 36,000 at this point. It's a good deal IMO as the buyout value is less than the market value.
I've already been preapproved for a $15,000 used car loan at the best possible rate 1.99 for 5 years based on my excellent credit.
I also have the $15,000 split across a few Vanguard funds and would rather not touch that money. It's making way more than 1.99%
I have no other debt aside from my condo mortgage. Finished paying off my student loans last month woot!
So my questions is, if you are making more on your investments than interest owed for borrowing money for a car, is it okay? I still plan to pay the car debt off ASAP but at 2% it's really not affecting me much.
I want to purchase the Hyundai rather than downgrade to an older vehicle because I do enjoy many of it's features.
Why I want to keep it:
- Great gas mileage
- Cheap to change oil
- Great creature comforts like heated seats and bluetooth mp3
- Holding it's value well in the market
Before the Hyundai I was paying 5% interest on a newer Audi S4 (just graduated college) so I felt extremely Mustachian when I downgraded to the Hyundai.
Any advice is appreciated!
Thank you