What to do with ten grand

[theoldprof]

Let's assume I have ten thousand dollars and I want to buy a cargo van. Let's assume my wife owes ten grand on her car with a $300 a month payment. Would I be better off paying off her car and have a zero payment, or putting the ten biggies as a down payment on the van. I would have ten thousand start up cost and a #300 less payment. The numbers probably don't add up, but I hope you get the idea. My total monthly payments in the end would equal out. Plus, my larger interest costs on the van would also be a larger business deduction. Am I thinking correctly on this? I have "running" money, so that is not an issue for this topic.

Thanks. :+ :+

 

[theoldprof]

ANYBODY got any input for this?

Thanks. :+ :+

 

[Fkatz]

Oldprof,

Frist of all it will depend on the interest rate that you are paying off on the vehicle, then you have to figure what interest rate you would get if you put it on a new van, you are still going to have a payment, the only thing different would be the business use.
If you take mileage it wouldnt matter what the interest rate would be due to the fact that only the mileage is deductiable. you cannot take the interest, payments, insurance, or any other expenses except tolls, and fuel.
The the deciding factor would be which way does is work out to your best advantage. taking Actual expenses, or mileage. you cannot take both
Frank