Trump promises to make car loan interest deductible

[ruh-roh-RHO]

Depending on how whatever is written out, vehicles purchased in 2025 or any interest paid in 2025 ... Is it a bad thing waiting for your RHO delivery until 2025?

Unlikely to take affect or be rolled back before January 2025 or April'ish, writing off the interest on the loan would be nice.

Trump promises to make car loan interest deductible, end double tax on foreign income

 

[frogjbm]

Depending on how whatever is written out, vehicles purchased in 2025 or any interest paid in 2025 ... Is it a bad thing waiting for your RHO delivery until 2025?

Unlikely to take affect or be rolled back before January 2025 or April'ish, writing off the interest on the loan would be nice.

Trump promises to make car loan interest deductible, end double tax on foreign income

Please Please Please baby Jesus!!!

 

[RADA]

If the trend I see here continues, mine should show up in March or April.. AWESOME!

 

[Gunguyaz]

I really hope interest isn’t tax deductible as this encourages higher prices and poor purchasing decisions by people who can’t afford it.

 

[RADA]

I really hope interest isn’t tax deductible as this encourages higher prices and poor purchasing decisions by people who can’t afford it.

100% for it...

The market won't tolerate higher prices.

And if people want to be stupid with their money that's on them, not me...

 

[Kaiser75]

100% for it...

The market won't tolerate higher prices.

And if people want to be stupid with their money that's on them, not me...

Exactly you can't fix stupid or legislate morals. We shouldn't be punished for others poor decision making abilities.

 

[Gunguyaz]

Exactly you can't fix stupid or legislate morals. We shouldn't be punished for others poor decision making abilities.

If you are financing you aren’t making a great decision. The government is incentivizing you to buy beyond your means.

 

[Kaiser75]

If you are financing you aren’t making a great decision. The government is incentivizing you to buy beyond your means.

I can pay cash if I choose and if the truck ever arrives I might not finance according to what I have going on at the time. Buy beyond my means? I'm not the individual dependent on a weekly, biweekly or monthly pay check. Again if someone choses to make a bad decision that's on them. In my business I sometimes finance things that I can pay for to keep funds on hand in case a opportunity arises and for cash flow reasons.

 

[Banger]

If you are financing you aren’t making a great decision. The government is incentivizing you to buy beyond your means.

Not necessarily. If I can borrow at a lower rate than my investments make, I'll make money vs paying cash. So actually smarter in the right scenario.

 

[yoda33073]

If you are financing you aren’t making a great decision. The government is incentivizing you to buy beyond your means.

There is nothing wrong with financing at a low interest rate if your cash makes a higher interest rate elsewhere. Example: 4% car loan while my cash makes 9% in an IRA.

 

[Banger]

There is nothing wrong with financing at a low interest rate if your cash makes a higher interest rate elsewhere. Example: 4% car loan while my cash makes 9% in an IRA.

Exactly!! You're making 5% interest on that $80k vs 0% by paying cash. While I agree that people should not get themselves in over their head financially, I'll also never understand the Dave Ramseys of the world who think they need to be debt free. Used wisely, debt can make you money, just like in this example. Compound interest is an amazing thing that can work for you or against you, depending on how you use it.

 

[Gunguyaz]

There is nothing wrong with financing at a low interest rate if your cash makes a higher interest rate elsewhere. Example: 4% car loan while my cash makes 9% in an IRA.

What happens when you lose 9% on your invested cash while also paying 4% interest on a car loan?

I’m not a Dave Ramsey fan but he is right that most people don’t actually make rational decisions when it comes to money and spending. Most who finance cars do so because they have to and often at terms that average close to 72 months.

 

[Kaiser75]

Not necessarily. If I can borrow at a lower rate than my investments make, I'll make money vs paying cash. So actually smarter in the right scenario

Exactly!! You're making 5% interest on that $80k vs 0% by paying cash. While I agree that people should not get themselves in over their head financially, I'll also never understand the Dave Ramseys of the world who think they need to be debt free. Used wisely, debt can make you money, just like in this example. Compound interest is an amazing thing that can work for you or against you, depending on how

What happens when you lose 9% on your invested cash while also paying 4% interest on a car loan?

We've resorted to the what if scenario now. Boy that can go about million different directions.

 

[yoda33073]

What happens when you lose 9% on your invested cash while also paying 4% interest on a car loan?

I’m not a Dave Ramsey fan but he is right that most people don’t actually make rational decisions when it comes to money and spending. Most who finance cars do so because they have to and often at terms that average close to 72 months.

You have to know something about financing. I'm not telling you to finance your truck. Everyone is in a different situation. I can buy my truck with cash if I wanted to. But right now, you can buy CDs that are guaranteed to make 4-5%. That's reason #1. Also, over a 7 year time frame with conservative to moderate investing, you can easily make between 5 and 10% on ypur money. I made 9.5% on my IRA with 50% in ultra conservative funds that were pretty much guaranteed to make 5%. And over the past 3 years the s&p 500 is up 23%. Just like your home equity increases about 3% a year. Some things are what they are. And now that Trump promised to lower auto interest rates AND the stock market reaction after the election, it's a no brainer. Put $30k down to cover any immediate new car depreciation and finance the rest hopefully at 3% interest and make 10% in simple moderate equity investments. Or 4% on guaranteed CDs. Good luck.

 

[Ads75]

We've resorted to the what if scenario now. Boy that can go about million different directions.

This thread started as a what if scenario.

 

[Kaiser75]

This thread started as a what if scenario.

Oh okay it started with what if the auto interest was 4 percent and I lost 9 percent on a investment. Sorry about that didn't realize.

 

[OBYsRHO]

What happens when you lose 9% on your invested cash while also paying 4% interest on a car loan?

Buy the dip baby. Historically no reason to bet against america. but i guess depends on your age too

 

[D&Sadventure]

You have to know something about financing. I'm not telling you to finance your truck. Everyone is in a different situation. I can buy my truck with cash if I wanted to. But right now, you can buy CDs that are guaranteed to make 4-5%. That's reason #1. Also, over a 7 year time frame with conservative to moderate investing, you can easily make between 5 and 10% on ypur money. I made 9.5% on my IRA with 50% in ultra conservative funds that were pretty much guaranteed to make 5%. And over the past 3 years the s&p 500 is up 23%. Just like your home equity increases about 3% a year. Some things are what they are. And now that Trump promised to lower auto interest rates AND the stock market reaction after the election, it's a no brainer. Put $30k down to cover any immediate new car depreciation and finance the rest hopefully at 3% interest and make 10% in simple moderate equity investments. Or 4% on guaranteed CDs. Good luck.

You are correct about S&P the last three years overall the economy has been absolutely fantastic. My company has grown to 187% of 2020 values. investments in the market have had great returns. Unfortunately we can’t count on that continuing.

 

[rjwool]

I really hope interest isn’t tax deductible as this encourages higher prices and poor purchasing decisions by people who can’t afford it.

This is correct. Trump is going a bit too far now on some of this...It is a depreciating asset thus meaning the interest should not be deductible as it is not an investment.

 

[rjwool]

You have to know something about financing. I'm not telling you to finance your truck. Everyone is in a different situation. I can buy my truck with cash if I wanted to. But right now, you can buy CDs that are guaranteed to make 4-5%. That's reason #1. Also, over a 7 year time frame with conservative to moderate investing, you can easily make between 5 and 10% on ypur money. I made 9.5% on my IRA with 50% in ultra conservative funds that were pretty much guaranteed to make 5%. And over the past 3 years the s&p 500 is up 23%. Just like your home equity increases about 3% a year. Some things are what they are. And now that Trump promised to lower auto interest rates AND the stock market reaction after the election, it's a no brainer. Put $30k down to cover any immediate new car depreciation and finance the rest hopefully at 3% interest and make 10% in simple moderate equity investments. Or 4% on guaranteed CDs. Good luck.

This is the problem. Thinking your returns will be similar to the past is a flawed assumption. The day of reckoning is coming as the market is up nearly 50% in two years. Mean reversion will come back to bite you in the ass. Trust me. This is what I do for a living.