You could buy a 10 mpg Hummer for $35,000 and have the interest on the remaining $45,000 pay for all the gas you could ever use for the rest of your life...
But you wouldn’t get that smug, self-righteous feeling of innate intellectual superiority as you drive!.............
Or, you could spend your $80k on a Corvette Z06 or Nissan GTR.
At a 8% rate on $45000 your yield will be around $3600/year. At $4/gallon that will buy 900 gallons. 900 gallons will get you 9000 miles in said Hummer. Few drive that little and 8% is generous. In a bond fund or something fairly non-volitile, 4.5% would be more realistic yielding you somewhere around the 5000 mile mark. If you cut into the principal, you'd probably dry it up within 6 years at 15000/year.
Interestingly enough, I recently drove my 2008 Hummer for a 600 mile trip. The mileage? 15.3. And, no, i did not drive slowly or coast down hills.
The new engine coupled with a six speed auto tranny makes a nice difference.
My old Dodge Ram only got 13 mpg on the same trip.
You could buy a 10 mpg Hummer for $35,000 and have the interest on the remaining $45,000 pay for all the gas you could ever use for the rest of your life...
5 posted on Thursday, May 15, 2008 2:55:41 PM by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
I did the math. At 3% interest, you could only drive 3,500 miles per year on the money you would earn by investing the $45,000.
Well, yeah-—My guys build my big block Jimmies for about 4,500.00 bucks——they get at LEAST 9 MPG in my trucks, which I can get into w/o squatting. I can burn a lot of 5 dollar Soddie gas before I wish I’d spent the money on an electric Krautcan. And there’s no argument about who can get to 60 first-—just have to wait for the road to catch up with my wheels.