Cobra Financing

[patrickt]

Originally Posted by madmaxx

In reality the opportunity cost for my SPF is only $33K. This is based on the fact that the funds that I sold to buy the SPF are worth substantially less today.

OK, so I could say that "but for the fact that I bought my ERA, I would have purchased GM Bonds, thus the true cost of my Cobra is next to nothing." You get an A+ for creative thinking....

[madmaxx]

If it was creative thinking I wish I would have known at the time, I would have been better off buying 10 spf cobras a year ago as compared to what the account is now worth.

Originally Posted by patrickt

OK, so I could say that "but for the fact that I bought my ERA, I would have purchased GM Bonds, thus the true cost of my Cobra is next to nothing." You get an A+ for creative thinking....

[patrickt]

Originally Posted by madmaxx

If it was creative thinking I wish I would have known at the time, I would have been better off buying 10 spf cobras a year ago as compared to what the account is now worth.

No, if you had known at the time then you would have called up your broker and said "Bennie, I'm feeling lucky -- everything I got goes in to Put Options." Had you done that, you would now be in a position to invest in a real Cobra.

[madmaxx]

LOL!!!!!!!!! and how true.

Originally Posted by patrickt

No, if you had known at the time then you would have called up your broker and said "Bennie, I'm feeling lucky -- everything I got goes in to Put Options." Had you done that, you would now be in a position to invest in a real Cobra.

[WarrenG]

When I bought my Dodge Durango, I refinanced the house, got a lower interest rate and the payment was well within our ability to pay. I just figured out how much more I had to pay to pay off the truck in 2-3 years and the interest was tax deductible. When I bought the Cobra, I took out a second on the house. Because we'd been in the house so long, my new payment was still well within our income, in fact we could probably still have made the payment with only one income. Interest was 5.5% and tax deductible. I still think both were worth it so I could drive it now rather than waiting. If you can afford it finance it.

Because I took out the second when I ordered the car, I had the money available to make the progress payments when they were due. In between the money stayed in fixed investments making approx 4% so my net was 1.5%. By writing off the loan interest and claiming the earned interest, my net was still around 1%.

Hagerty... They won't insure the cars, but you telliing me they'll finance them?

[m5extc]

Hagerty... They won't insure the cars, but you telliing me they'll finance them?[/quote]


Hagerty will now insure only CSX and Superformance cars (maybe Kirkham as well, I didn't check). The were picky about high horsepower driving experience. I am not sure if they will only finance those brands as well or not.

Andrei