Car dealer 1.9% financing vs Ally CD ladder

[BlackStrat]

I have the cash to buy outright but what kind of rate difference would make it worthwhile to manage a CD ladder with a 5-year loan?

[runner23]

Seems immaterial to bother. Just pay cash.

[Dottie57]

Seems immaterial to bother. Just pay cash.

+1

[Katietsu]

I think this is the same debate as chasing credit rewards. I am regularly trying to balance simplification with optimization of bonuses, rewards, higher interest and lower fees. I tend to think in terms of how much am I making on an hourly basis and how much mental drain is involved.

I actually decided to take a 1.9% car loan and keep the funds in a 2.7 % account. I am basically breaking even when I consider taxes. So I would not do this for the money with my numbers. If you had a low enough tax rate you might be able to come out ahead enough to justify it for the cash. I made the choice because my credit score was getting dinged for no installment loans and I wanted the flexibility to go after a couple credit card bonuses and still stay in the excellent range.

I was also able to set it all up with auto payments so not much hassle for me.

[BlackStrat]

I calculated a small gain with the CD 's but didn't even think about taxes.

Not worth it - thanks