Wednesday, January 10, 2007

Here's how:

You write that "with smooth economic sailing one should be able to make money with the money you borrow." But Ben, how can you make money off of a car loan?

Ben's response:


Here's how to make money on a 3.9% car loan: Invest the money so that it yields more than 3.9% counting interest,dividends, appreciation etc. which should not be too difficult if there is smooth economic sailing.

1 Comments:

Anonymous Anonymous said...

Ben, I took it as a given that I would need to invest the money from the 3.9% interest loan into something that would yield more than a 3.9% return. What I don't follow about your idea of making money from a car loan is the "CAR" part. Last I checked, concerning car loans, the only thing a bank will allow you to invest in with that money is an automobile, which starts depreciating before you even drive it off the lot. I suppose if you got a lender to just give you the cash so you could invest it in something other than a car, then you could make money on that investment. But it wouldn't be a "car loan" anymore...

Am I missing something here? Do you expect your Impala to APPRECIATE in value, after which you will sell the car for a profit? If so, what makes your Impala different from the 99.99% of new cars that lose value after their date of sale?

January 10, 2007  

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