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I bought a new car about a year and a half ago. With 3 years 0% interest, I put the entire amount in an index fund and have been paying installments. At this point I’ve paid ~18,000 but because of market profits and taxes it has only been around $8000 I’ve really ended up paying.

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You’re saying you invested the equivalent of the car’s sticker price into an index fund upon purchasing, and draw from that to pay the installments on the loan used to purchase the car? How is this different than just investing all your spare cash? Mindset shift reserving the capital to cover the cars value, like the envelope budgeting approach?

It’s not really different except it’s better than paying for a car outright during this market and you’ve already put the money aside so you don’t have to worry about coming up with it each month.

This is the way.

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