[Esophagus4]

I agree - I think it’s bad advice. And cars make even less sense than houses, which should hopefully appreciate in the long run. People think of car loans like “free money” if I can buy a car on credit and pocket the spread between my investments and my APR.

The problem is:

1) that encourages you to buy more car (and lose more money in depreciation and fees) than you would if you just paid cash for a cheaper car

2) there’s no guarantee you can beat your APR in the short run (to beat your APR you almost always have to move out on the risk frontier… T bills are not doing it)

I view it as: if capturing that marginal spread of whatever% is important to you, you are spending too much money and you’re probably taking your eye off a bigger loss you’re taking by spending all that.