Cashing Out IRA To Buy Car?

[Tramp68]

I disagree that a 401k loan is better than a car loan. while you are paying interest back to yourself, 1) you repay the loan with post tax dollars, and you will be taxed on the same money again in retirement when you take it out 2) there is potential opportunity loss...the money you should have invested could be growing at a rate higher than the interest you are paying back to yourself.

Tell that to a person who had a loan out when the market crashed and is paying the loan back while the market is rising again....

You would be paying the loan back to the bank post tax as well. If you pay back the bank you will never have it to get back so being taxed again is irrelevant. You are actually buying the car with pre tax dollars and paying taxes on it later on when they are generally lower than the taxes you are collecting now.