<prompt> Human: Seeking to buy a used car for: 20,000 over 5 years 4.0 interest rateDoes it make sense to pull: 2,500 out of my 401k as a loan 4.0 interest repayment over 2 years 100moto put as a down payment on this car? It seems like easy math not to as the interests rates are the same, I just wanted to make sure Im not missing anything  <response>: So if you are thinking about taking 2500 from your 401k it probably means you dont have any savings and if you dont have 2500 saved to make a down payment which probably means you havent been saving so where in your budget is there room for a 370 car payment plus 100 per month to pay back your 401k, plus the increased cost of car insurance?Over the years Ive found many great used cars for under 2k, unless your car is a source of income all it needs to do is get you from point a to b. Buy a cheap car and then try saving that 500 a month and then you will have money for repairs or for a down payment on a better car. 