But here’s a little incentive for not having a loan even when it seems “cheap”.
Commuting to parting with $800/month is one thing but even at 1.8% you’re actually giving up that plus the loss of using that $ in something like ATT investment purely for dividend. 1.8 + 6.2 = 8% compounded on the $800 you’re already ok with not having .... over 3 yrs that’s a net difference of $4100 aside from capital retention. About 3000 is actual 6% dividend gain but I’m adding what you’re not losing on the loan which you could also add to the ongoing growth of the investment.
This is a simple deal too, you start with your first ‘payment’ of $800 and add $800 more each month and the dividend gets reinvested as well.
What also awesome, while your purchase of the vehicle is a 100% known depreciation slope, the investment may drop some, but is just as likely, probably more, to go up or at least hold level.
Now, if one is really good at the investment side, you might now want to tie up capital in buying a car with cash if there are 0% or low % loans....but guess what, maybe consider only buying the least expensive version you can justify.
Meaning, why stop at 2014 pricing, why not 12, 10?
Look at what your $800/month $ can do vs just dying on the vine slowly
If your 2015 is worth a great amount, you could actually use that 10k to buy an lr3 outright.
Which leads me to realize, LOL @ myself ... how can you owe 34-36k and have any more than maybe 10k equity? Autotrader shows low mileage ones for 45-52 tops.
Trade in, if you’ve never been down that road, is where you cry cause it’s never what it seems like it should be worth.
I’d dump it immediately and buy a well maintained lr3 for cash outright and stop the $ outflow.