Quote:
Originally Posted by flybigjet
What's the purpose of saving, if not to use the funds occasionally?
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What's the purpose of using the funds when the cost of a loan is so low?
The interest is $3,124.86 on a $40,000 5 year loan. You setup an auto withdrawal on $719 per month to make the payment and in 5 years of a 6.5% return your car is paid off and you have an extra $4,223 in your account.
That's before you even calculate the taxes, which will always be higher when you take a lump sum like that instead of $719 a month.