If you have to get a loan for a car you’re doing it wrong.
I completely disagree, with low interest loans and mass inflation it is stupid to pay cash. Get the lowest rate you can on the longest debt and watch the principal devalue over time. 1.99 arp is not uncommon, we’ve had officially 4% inflation last year but actually significantly higher.
I agree, but shit happens in threes.
The interest on most car loans is negligible and that cash used to buy the car could earn more elsewhere.
There's also about 2% in fees so don't neglect that. The best rates are for short, e.g. 3 yr, loans. And you're not going to have a 7% expectation on that $40k cash unless you have no idea how to manage risk. A young man with a mortgage has more in his trading account, but because he has a mortgage, he has to run a certain amount of that like he's 80 years old. Pay off your necessities and you can go full bore growth risk.
Who do you think pulled $100k from their 401k last year and missed doubling that money? I guarantee it was mostly people who had a mortgage and were afraid of losing their homes. Those with a paid off house gave no fucks and got rich off stupid shit like tqqq.
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