Β #Finance #CarLoan #GIC #Investing #FinancialPlanning
π€ Let’s break down the math here!
πΈ Cost of car = $43,200.76
π° Down payment = $5,000
π³ Balance to finance = $38,200 at 1.90%
π‘ After putting $38,200 in a TFSA GIC at 5% for 1 year at EQ Bank, you calculated earning $4,563 π
π€ But are you actually gaining $4,563 by putting it in a GIC? Let’s figure it out together!
π‘ Possible solution:
– Consider the opportunity cost of tying up your money in the GIC for 3 years
– Explore other investment options with potentially higher returns
What do you think? Share your thoughts and let’s dive deeper into this financial scenario! π‘π°
So the GIC rates can go up and down. It might not be 5% anymore after the first year. The only way to guarantee the rate over three years would be to get a three year GIC
Do not buy the car. Otherwise you will succumb to financial ruin beyond what you can see today.
Simple yet genius approach! You’re basically getting a free car, congrats!
Do the calculations on a 3 yr GIC. It will be more accurate
Mitsubishi Mirage is only $16k before tax…. π
How did you get that Rate? What vehicle did you financeΒ
I’,m actually in a same boat. I believe this is for Mazda? After seeing 1.9% financing option, I’m leaning towards just paying the fee and put the down payment and others in GIC/cash.to in TFSA. In my brain, it seemed like a better financing plan.