Originally Posted by dmctlc
Thats tough decision sometimes with car dealers offering 0% or 1.99% when investments are earning very little if not losing because of the pandemic. I've done it both ways over the years weighing on the net cost that it would be for the term of the loan vs. withdrawing from your investments. The best method, IMHO, is taking a loan against your investments since your paying yourself back the loan plus interest.
Right now my new investments (as well as many others) are earning around 20% due to the pandemic. It has been a great time to buy.
As for which is less expensive, a loan or paying cash... Again, look at the cost of money over time. If you are earning 5% on your investments then why would you take that money out and pay for a car that you can get a 0%, 1% or 2% loan for? A 0% loan for the life of the loan is basically paying less than cash. Spreadsheets are great for comparing scenarios and using data, instead of feelings, to find the best way to use your money.