Personal Investments • $90K 48 mos loan at 3% OR outright purchase

An auto purchase, $90k (BH sideeye )
Dealer Fin offers 3%/48mos (or 60mos)
I have the cash: $90k currently in MM at 5%. Marginal tax rate is 25%.
I see that the loan amortization is heavy up front.
Approx 9% of payments in yr 1 is interest, and 6%, 3%,1% in yrs 2,3,4 respectively.
Am I right in thinking I can invest the $90k and take the loan, and have a decent likelihood of coming out ahead?
Where would you advise I can invest safely/with some risk (10% at risk)?
How do I analyze this?

Thanks

Statistics: Posted by Domadosolo — Wed Mar 27, 2024 6:36 am — Replies 1 — Views 23

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