Car purchase
Curious to hear peoples thoughts.
I'm thinking of buying a new (to me) car. My current car that I bought used and have driven for 10 more years runs just fine but I'm interested in possibly upgrading literally just for the fun of it. It is absolutely a "luxury" purchase in that my current car totally meets by basic needs and thus this upgrade is purely to increase my own enjoyment of driving.
Car cost would likely be ~$50,000-$80,000
Current financials
HHI: $600,000ish
Non-home net worth: $1.4mill
Age 41
Tax advantaged retirement savings: We're maximizing 403b x 2, BDR IRA x 2, HSA, 457 x 1, Solo401k about 2k/yr,
$10k/yr for 529.
Good Efund
Saving additional $3000-$5000/month into brokerage account.
We are on track of target retirement age 55. Thats all good
My question is:
I currently dont have $50,000 sitting uninvested other than in my Efund (which I will not touch for something dumb like this).
IF you were going to purchase such a car (not asking about the wisdom of said purchase)
Would you
Take out a loan @ ~4% x 36 months-ish and cash flow the monthly payments (I would not go with this option of interest ends up being >5.5%)
Sell off some brokerage account $$ to either pay car in cash or get financed deal and rapid early payoff and taking the LTCG hit
Start saving for said car with combination of cash flow (with some decrease spending in other non-essential areas) and also decreasing contributions to the taxable brokerage to speed things up.