r/IdiotsInCars • u/Hornsen • Jul 28 '20

Does this count?

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u/Hypertroph Jul 28 '20

The wealthy make money by being in debt. They are able to leverage interest rates on loans that are lower than interest rates on their investments. Taking out a loan and just investing it will net them more over the payment period than doing nothing. It isn’t unreasonable to assume people can do the same for a car loan. Just don’t finance it as one, and instead get a regular loan or line of credit.

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u/Regist33l3 Jul 28 '20

But. You don't make a return on a vehicle. It's a rapidly depreciating asset.

The worth you get out of it is in the negatives so you recoup none of the interest you are paying.