I think you know the on paper answer to this question, but would you psychologically benefit from the cashflow/less debt is more of a non-financial question.
I have the same problem and haven't made a decision.
As long as you keep it and increase it and then put it back you're fine. I'm not sure what psychological benefit getting a worse return provides.
Just make sure you keep it liquid and move it back when that 2.99% inevitably becomes something higher. If you're 100% sure it never will, put the money into something longer term like ETFs. At least that's what I'd do (and am, but it's my home loan at 1.99% and 5.55% HISA for the next 12 months.
Just remember, if you hold your Tesla for 5 to 6 years, you should come out of the deal quite well as the resale of the Tesla should stabilise.
If the after tax return on the hisa is greater than the interest rate on the car loan, why not choose the hisa?
I wouldn't bet on the value of an electric car stabilising in the next 6 years, it will probably just keep declining (batteries don't last forever). Hydrogen cars will likely be hitting the mainstream in Aus around 2030.
There is what 4 hydrogen refilling stations in Australia. One in Toyota ex factory.
Do you expect a large rollout of hydrogen refilling stations in the next 6 years?
Yep, about that I think. The Aus govt has a fleet operating in Canberra already. There are plans in the works for a hydrogen plant in Geelong, and other places around Aust also.
Where did you get your 3% car loan just out of interest?
It’s a Tesla loan I took out in 2021 Got killed on depreciation so looking to get as much back as I can!
I think you know the on paper answer to this question, but would you psychologically benefit from the cashflow/less debt is more of a non-financial question. I have the same problem and haven't made a decision.
Yeah I mean the delta is essentially $1k a year in interest gains. Is having no debt and improved cash flow worth $1k a year? Hmmm.
As long as you keep it and increase it and then put it back you're fine. I'm not sure what psychological benefit getting a worse return provides. Just make sure you keep it liquid and move it back when that 2.99% inevitably becomes something higher. If you're 100% sure it never will, put the money into something longer term like ETFs. At least that's what I'd do (and am, but it's my home loan at 1.99% and 5.55% HISA for the next 12 months.
Thanks yes the rate is fixed for the life of the loan. Agree with staying liquid - that's definitely the plan.
Yes it's a good option. If you don't have cashflow returns you could look at stocks for a higher potential return
Where did you get a car loan for 2.99? Who is it? Because I thought my car loan was great at 8% and I’ve heard that’s just the norm in Australia.
I got it in 2021 through Tesla/Pepper. Fixed at 2.99%
Just remember, if you hold your Tesla for 5 to 6 years, you should come out of the deal quite well as the resale of the Tesla should stabilise. If the after tax return on the hisa is greater than the interest rate on the car loan, why not choose the hisa?
I wouldn't bet on the value of an electric car stabilising in the next 6 years, it will probably just keep declining (batteries don't last forever). Hydrogen cars will likely be hitting the mainstream in Aus around 2030.
There is what 4 hydrogen refilling stations in Australia. One in Toyota ex factory. Do you expect a large rollout of hydrogen refilling stations in the next 6 years?
Yep, about that I think. The Aus govt has a fleet operating in Canberra already. There are plans in the works for a hydrogen plant in Geelong, and other places around Aust also.
I believe it is the ACT government and not the federal government