Is a 7% return realistic?
Opting for a 72-month (six-year) car loan is generally regarded by financial advisors as a risky and unfavorable borrowing strategy, even though it provides temporary relief through lower monthly payments. Spreading auto financing across six years substantially increases the total cumulative interest paid over the life of the loan compared to shorter 36 or 48-month terms. More importantly, extended loan terms frequently lead to a state of negative equity—commonly known as being "upside down"—where the vehicle depreciates much faster than the principal balance decreases. This leaves owners vulnerable to severe financial loss if the car is totaled or stolen, as insurance payouts may fall short of the remaining loan balance.
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Fifty thousand Delta SkyMiles have an estimated baseline cash value of approximately $600 based on standard industry reward valuations, where individual miles are generally appraised at roughly 1.2 cents each.