It's just a tax thing.So I’ve been pretty lucky with my 2013 Honda Pilot. I’ve put about 110k miles on it and haven’t had any issues (knock on wood). However, I can’t help but think I’m starting to press my luck and sooner or later something is goin to happen and I’ll be forced to start having repairs to deal with and may be rushed to try and replace it. Therefore I’m starting to casually look around and thinking about the best way to pay for it. I presume interest rates are too high to consider so I’d probably look to pay cash, which is where my question comes in.
Is it better to save up cash over the next year…or sell some S&P 500 stock and withdraw the money from my taxable account whenever I’m ready to buy?
Factor in the tax on selling in the S&P 500. See which way it goes - if you add that tax to the purchase price of the vehicle (mentally).
I am assuming you are not tapping money in tax deferred accounts. If you had to, I would save up and wait to buy the car.
Statistics: Posted by Valuethinker — Thu Feb 22, 2024 3:36 am — Replies 9 — Views 698