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Originally Posted by TESLAASTRO
W@W that really depends.......assuming you dont have a Roth IRA, option B, and use $4,000 to open a Vanguard Target Retirement 2045 Fund(excellent fund of index funds, well diversified, and automatically adjusts asset allocation as you get older)...if you have a good Beacon score, odds are that you could get sub 6% financing., which you can beat easily and conservatively with the wonderful fund I just recommended........then again, I know nothing about your financial situation.....sounds like you are young from your question though....
C I recommend too.....if you do not have an emergency fund that covers you for at least 3 months, I would put a small amount, or even nothing down......take all the money and invest in a Vanguard Prime Money Market Fund.....that fund allows you to write checks of at least $250....write a check each month from that fund for the car.....the interest earned will pay nearly for the interest paid....not only that, but paying the car off regularly will increase your FICO vs just paying cash
if you have a Roth and emergency fund, go for it and pay cash.....Never, I mean never, borrow on a 401K if you have one (except for a medical emergency)
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I can't do a Roth IRA, I make too much money. I have money in my 401(k) and other investments but I'm not touching that obviously. I have a Vanguard account, but not the Prime Money Market Fund you mentioned. I will look into it, though. Thanks.