Quote:
Originally Posted by Flying Ace
what's the total cost of finance though? (Interest and finance charges?). Read the disclosure and get back to us.
This is more of a cost of financing vs discount or a investment return exercise to me. You'll get a "deal" on list price, but I'm sure you give it mostly back (if not more) in interest and finance charges. Come on...they're not dumb. They think you are, but if you crunch the numbers, you'll know the correct solution.
Now if both scenarios equate to the same out of pocket cost, then it's a opportunity cost/investment returns exercise. But all the "smart" people who claim that's the main reason they finance..I'm betting actually rarely invest that money and get their estimated return. They just end up spending it on something else or let it sit in cash, eating up opportunity cost.
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He's suggesting that he finance to capture discounts, then immediately pay off. Not finance for full term.