People have asked me why I didn't pay cash for my RV when I had the money to do so.
Here's the simplified answer.
My investments are currently netting an average return of 7.5%.
The financing will be 6.99%
By financing, my money will keep working for me and I'll still be ahead .51% at the end of the year.
Even more succinctly: I'd lose money by paying cash.
I'm sure there's nuances to that, but that's the short of it according to my financial adviser. Had my financing been at the 8% I was first offered, then paying cash would have been a better option.
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