Buying a car - pay full in cash or take loan?

Hey, if i were u you, i would take loan and use the remaining cash to invest in REITS. Since REITS give a higher returns than car loan of 2.5%, you would still make positive returns if you net it out. But don’t expect it to be a lot. It’s up to us to learn how to leverage . Never waste all your cash on a depreciating asset. Use that extra cash to invest and make more money for yourself

Above all, the interest rate for a car is guaranteed while investment only yields non-guaranteed return. Therefore, this is something that you need to consider in the first place.

That being said, most car loans work on a simple interest basis. Therefore, it is possible to beat this rate through investing your money. You can read more about simple interest here: What is Simple Interest

Also, find out more about how the cost of a car adds up: Cost of owning a Car in Singapore

Finally, do take note that if you intend to take a loan and do a early repayment, there is usually an additional fee. Hence, bear that in mind as well.

Enjoy your new ride!

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