For one, if you put your money in a retirement account it is not liquid without a 10% penalty. Thus, you would lose quite a bit of money toobtain it.Also, you do realize that a roth is post tax dollars, right?
The penalty for early witdrawl is higher than 10%.....but that's netiher here nor there. If I were worried about having to tap into it.....I wouldn't borrow against it.You're planning (in your worst case scenario) against a catastrophic loss....and not a temporary setback (such as a job loss). Yes....a Roth is post going in.....but not coming out.
If you have the cash to pay off the note the spread you are making still is not worth it IMHO.
Again...your decision. Not saying on'e wrong or right for everyone. You have to weigh your own wants and needs against your abilities to pay for both.....and also the risks you're willing to take......THEN make a fiscally responsible decision about your $$. We just disagree, some. No biggie! You sound like you weigh your situation responsibly. Commendable. We don't take debt lightly.
BTW, most peoplewho borrow on vehicles don't have that amount of money saved.
Conceded. Each individual is different.
Oh well, agree to disagree.
And a wonderful discussion!