Quote:
Originally Posted by burrito007
Of course if you can invest the 20k in something guaranteed over 7% return per year (and of course you have to figure in taxes on the gains) by all means do that instead. But for MOST people the 20k is better spent as a downpayment.
edit: also if you total the car how is the money gone? you get a check from the insurance company for the whole amount of the car.
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Agree w/ all that burrito said. Also, the key word is "guaranteed" 7% after-tax return, ie zero risk. If you can invest in something in, say, a balanced portfolio, and expect to get 8%, then you are taking on
some risk for a 1% net. I like to spread my 'bets' & so will put some money down.