OMG. What’s your marginal tax rate? If you’re making decent money, the taxable 4% will net you about 3% or less. Maybe even less than 2.64%. There’s no margin there.
Let’s use your example of a $41,000 loan for 84 months at 2.64%. After 4 years, the balance is going to be $18,500. What’s that $47,000 Tesla going to be worth? The 84 month loan is sort of like a 4 year lease, except the borrower is on the hook for the car.
Agree. My point was about the financing- not the collateral. For $100K:
$536.82 30 years at 5%
$515.77 40 years at 5.5%
Extra interest on 40 year loan $54,314 for a nominal payment difference. To me, 6 year loans are pushing it. 7 year car loans are like mortgages.