Originally Posted by
SimMonkey
Let me correct you:
I am leveraging an asset to obtain financing (OPM) at an interest rate that could be the cheapest in the history of financing in order to obtain my long term goals. What does the fact that cars depreciate have anything to do with this? As far as my momma, she used to tell me to make my money do the work. So far I'm doing fine. I grew up in a family of accountants. I happen to graduate from one of the best Accounting schools in the nation and was a CFO at one time.
I wouldn't call this "killing it", but I do have a net worth in excess of seven figures.
The bigger mistake is having $60,000 in depreciating equipment sitting in your driveway.
BUT you do bring up a really good point. Say one did have a bunch of paid off newer cars in the driveway, but also had a mortgage at 5%. Take the loan on the cars at .99% (or whatever) and pay down the mortgage at 5%. Your monthly payments would go up but overall your financial situation would improve. However, the difference wouldn't amount to much. Like I said you are much further ahead not buying those cars in the first place and spending a lot less money on beaters, and reducing how many you need overall.