Imbuying a $20,000 car+ building a $20 000 pool I have enough cash for 1 of them.Which 1 should i finance+why?

Public Comments

1. buy the car and finance the pool ... it's hard to repo a pool lol! just kidding! seriously buy the pool and finance the car.. whoever heard of financing a pool...people will think you are weird.
2. neither. buy one and save to pay cash for the other.
3. Well, you definintely don't need a $20 K car. You can find a good reliable car for a quarter of that price. It's not brand new but it's a car, and that's should be enough.
4. Neither, both are going to lose money. Cars devalue a lot in the short term and pools render your house virtually impossible to sell. If you must, buy the pool and finance the car. IF you run a business, you can defray costs by deducting cost related to the car.
5. Depends on how you plan to finance either one. Home equity may allow you to write off the interest on your taxes (if you can itemize). However, a $20k pool might only increase your property resell value by $10K, or less (long term thinking) and the car is going to depreciate. So, can you invest the $20K you have at a % greater than you would pay for a home equity loan, car loan, etc.? Maybe put a pencil to the rates you have gotten so far and see what's closer.
6. If you must have both right now, buy the pool with cash and then buy the car with a low interest rate loan from your local credit union. You could borrow the money for the pool on a home equity loan but I would not suggest that. If something bad happens and you cannot make the payments, they can take your home. If you can't pay the car payments, they can only take the car and not touch your home. You can still relax in the pool after taking the bus home from work.
7. Finance both if you could afford it. Make sure you go for a 30 year fixed open end mortgage. You could always pay down the mortgage. Also make sure that when you add the pool, get a performance bond from the builder. This way, in the event the pool is not property made, he can not get a mechanics lien and foreclose on the property. Also, of the first half of the life a mortgage, you pay about 70% so if you apply the 20, 000, you'll save alot of interest.