Which do you prefer when buying a new car?
By Cars & Motorcycles on Apr 26, 2009 with Comments 8
EvoX asked: If you want to buy a car which do you prefer, loan or cash?
Filed Under: Buying New Car
About the Author:
By Cars & Motorcycles on Apr 26, 2009 with Comments 8
EvoX asked: If you want to buy a car which do you prefer, loan or cash?
Filed Under: Buying New Car
About the Author:
Comments (8)
Ca$h. Get it out of tha way quicker I guess.
cash is way smarter, but not always possible.
price , performance , fuel effency , power and finally style
If I were you I would buy a car because then you would be able to sell it when you are unable to drive or when you want to get a different car. With loaning a car you wont be able to do so.
of course cash, so you won’t have any problem in the future and if ever you need something more for the vehicle. And that’s really better. Do you mind driving a great car but in credit? I think you can just use credits on extra car parts on parts and accessories like online in racepages.com and some car shops.
If your credit is good enough to finance at a decent APR, do it! With the credit crisis we’re in today, anyone who can finance should. Not only do you strengthen your credit but you can also put just part of your cash down on a car. And put the rest into bonds. But only if you qualify for a good interest rate.
When we finally get through the recession, you can convert the bonds in CD or other money market accounts.
The worst thing about paying for a car with cash is that it’s just like throwing most of your money out a window. A car is not an investment. It’s a liability. It LOSES money all the time you own it. By the time you pay off your loan, your car may be worth just 15% of what you paid for it.
Since you’re going to lose money, protect your losses by offsetting much of the depreciation with a sound investment like bonds. Keep in mind, bonds are still very strong today while the stock market’s taken a beating. Don’t put all your cash into a car.
Car loans are a dime a dozen, but which one should you go for? Especially if you are a prudent consumer with a balanced budget, getting the right auto finance can be quite a challenge, what with so many auto finance providers thrusting their offers in your face. Your dealer may even offer to do it for you. While this sounds really tempting, it may prove to be a costly affair. So do your own thing and check out the auto loans yourself.
You can get these loans from a variety of sources, like banks and financial institutions and online financing companies. Dedicated auto finance companies usually offer better terms if you approach them directly rather than through some middleman. You should also keep in mind that your credit rating affects the interest rates and the amount of advance you can easily get, so if the picture is not too good on that front, you can begin by working towards improving your credit rating.
If you have enough money then I would prefer cash.
In case you don’t have then go for a loan. Loan will take time to approve and will delay your buy. So take a decision accordingly. But if you need cash for other things right now then I would prefer loan because buying car requires a big amount.