06-18-2018, 02:42 AM
I treat cars like any other utility and have automatic monthly payments taken like I do for electricity, natural gas, water, insurance, etc. My Chevrolet Impala had a 0% interest 7 year loan option. I took that to keep the monthly payments as low as possible, although I have no intention of keeping it for 7 years.
The exception was my CB500XA. I emptied my Tax Free Saving Account so the boss couldn't complain about me buying something as frivolous as a motorcycle.
Three years later I traded it on my 2017 CB1100 EX. As my TFSA savings did not cover the difference, I took a 2 year Honda loan at 1.9%. I used the monthly deposit I usually put into my TFSA to cover the loan payments. The interest was peanuts, but Honda's unmentioned administration charge was annoying.
The exception was my CB500XA. I emptied my Tax Free Saving Account so the boss couldn't complain about me buying something as frivolous as a motorcycle.
Three years later I traded it on my 2017 CB1100 EX. As my TFSA savings did not cover the difference, I took a 2 year Honda loan at 1.9%. I used the monthly deposit I usually put into my TFSA to cover the loan payments. The interest was peanuts, but Honda's unmentioned administration charge was annoying.