Re: bmw-digest V9 #37 - Financing

["Gustavo Pagni" <finedge@xxxxxxxxxxx>]

In response to this here are my 02 

>Date: Thu,  6 Aug 1998 22:38:17 -0400
>From: Stephen Lafredo <slafredo@domain.elided>
>Subject: Re: <OT> Re: Financial question (interest accumulation)

I am a CFO of a main Hotel chain, therefore I will consider myself 
qualified to put my shoe away from my mouth *LOL*

Unless you are good at investing and taking hi risk in the market ( 
right now is not the time ), financing a car is not a bad deal, 
specially if you are smart enough to create a business on your name such 
a DBA, and write off up to 80% of the asset, and if you are leasing, 
well 100% qualifies for the 1st year and then you must follow a bracket.

This advise is free and in no way constitutes as information to cheat on 
your tax return *LMAO* ( damn disclaimers ).

regards, 
gustavo

>:Stephen Lafredo wrote:
>:> :I disagree with you that paying interest on a car is not a good and 
>:> :sound financial decision. If you have the cash to spend on
>:> :purchasing a car, shouldn't you keep that cash and finance the car
>:> :as long as the car loan has an interest rate LOWER than your return
>:> :on investment.
>:> :blah, blah -- cut
>:> :
>:> :...which has been averaging ~20%, PROBABLY WILL NOT continue...
>
>On 8/6/98 at 3:50 PM, kennedy@domain.elided (Brian M Kennedy) wrote:
>
>:Careful!!  Three words:  taxes, fees, and risk.
>: blah, blah -- cut
>
>:Disclaimer:  Never take investment advice off a newsgroup -- consult a 
>:professional (which I am not).
>
>On 8/6/98 at 2:40 PM, rrhacct@domain.elided (David Chen) wrote:
>
>:Now that the market has dropped 15%, I don't hear anybody touting 20% 
>:gains anymore.
>:
>:So in a bear market, is it still cheaper to finance a car at 10% or to 
>:let the funds sit in the bank and lose 15%, for a net financing cost 
of
>:25%
>:blah, blah
>
>Brain and David are absolutely right!
>
>I too am NOT an investment advisor and yes we have had VERY good 
returns
>in the past couple of years and yes my scenario was VERY simplified in
>that it did not take into account tax, fees and risk. For this I am
>sorry. I hate when people post quick snips without laying out all or at
>least trying to cover most aspects of the topic discussed.
>
>Though, just to clarify tax, we got to pay, so subtract them from your 
%
>returns. Fees, do not exist (are very low, < 0.5% or so) in my
>situation, you (of your advisor) really should check out some of 
>Vanguards funds, but yes subtract the fees too. Me personally, I
>generally do not invest in loaded funds or funds with 12b fees or fees 
>
>1% or so. Risk, *should* go without saying it is the stock market and
>you do assume SOME level of risk. I sort of hit on this very slightly 
in
>the statement "PROBABLY WILL NOT continue..." but did not clarify it as
>well as Brian and David.
>
>Thanks for keeping me honest!


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