Hey folks,
Longtime reader of the website and forums but first time posting. Very thankful for all the information I've been given from the site and forums. Hopeful to be more active on the forums moving forward. Wondering what some of you would do in this situation. Brief intro to myself.
Early 30's, married, dual physician household with no kids.
Annual Combined Salary: $515,000
Student Loan Debt: ~$115K refinanced with CommonBond at 3.325% (paying off as quickly as possible, started out much higher...)
Mortgage: ~300K 30 year fixed at 3.625%
Other Debt: None
I was fortunate to find this site at the end of medical school. In the past year we've both started our attending position in academics, and are maxing out our 403b, governmental 457, and backdoor Roths. Also have an employer match that goes into 401a. Leftover money has been pouring into our student loans and we are on track for them to be gone in a year or two.
I've been driving a beater which finally died (in a safe way...) last week. I've decided to buy a new Subaru Outback, which is my desired car for many reasons. Not buying used because used Subaru Outback prices in my area are absurd. I've been expecting my current car to die, so have a surplus in our emergency fund to buy the car with cash (OTD price $34K).
Current financing options for a 2018 Outback are 1.8% over 60 months. Looking at what is on offer at our local banks and credit card companies is not any better.
Onto the question. I know the math says to take out the loan and dump the emergency fund surplus into our student loans. But I'm extremely debt averse and the idea of taking out a car loan is not appealing. So what would you do? Pay the car in cash, or take out the loan and put another big dent into our student loans?
Longtime reader of the website and forums but first time posting. Very thankful for all the information I've been given from the site and forums. Hopeful to be more active on the forums moving forward. Wondering what some of you would do in this situation. Brief intro to myself.
Early 30's, married, dual physician household with no kids.
Annual Combined Salary: $515,000
Student Loan Debt: ~$115K refinanced with CommonBond at 3.325% (paying off as quickly as possible, started out much higher...)
Mortgage: ~300K 30 year fixed at 3.625%
Other Debt: None
I was fortunate to find this site at the end of medical school. In the past year we've both started our attending position in academics, and are maxing out our 403b, governmental 457, and backdoor Roths. Also have an employer match that goes into 401a. Leftover money has been pouring into our student loans and we are on track for them to be gone in a year or two.
I've been driving a beater which finally died (in a safe way...) last week. I've decided to buy a new Subaru Outback, which is my desired car for many reasons. Not buying used because used Subaru Outback prices in my area are absurd. I've been expecting my current car to die, so have a surplus in our emergency fund to buy the car with cash (OTD price $34K).
Current financing options for a 2018 Outback are 1.8% over 60 months. Looking at what is on offer at our local banks and credit card companies is not any better.
Onto the question. I know the math says to take out the loan and dump the emergency fund surplus into our student loans. But I'm extremely debt averse and the idea of taking out a car loan is not appealing. So what would you do? Pay the car in cash, or take out the loan and put another big dent into our student loans?
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