Do you think is it a good idea of buying a car on credit?

Answer 1

depends on your income. would be more sensible however to pay cash if possible

Answer 2

That depends on the rate of interest you are going to pay. Most people don't have the cash to buy a car outright so credit is the only option. However I have always gone for a personal loan rather than the credit offered by the car dealer. On my current load I am only paying 5.8% APR.

The credit rate can be a point of negotiation and often you can get them down to a reasonable level. Just make sure you check out the rates availible on the high street first.

Answer 3

Having trie this method in the past I would say that it is not a good idea. Unfortunately this is sometimes the only option open to a lot of us. I purchased a vehicle (a secondhand one) for £2,995.00p with only a £100.00p deposit some years ago. I had the finance over a three year period and actually paid back about £7,000.00p and by the end of the three years the car was on it's last legs and more or less worthless. Since then I have bought cheap vehicles within my price range and without credit, steadily upgrading as each car was purchased till eventually on September 1st 2006 I at last managed to acquire a brand new car without finance.

Answer 4

If you can afford it, and you get a good interest rate compared to the going rate at that time, and the car is in a good enough condition that it will likely last longer than the loan, then sure, it's a good idea. Most people can't afford to pay cash for a car, especially a new one.

Borrowing the money helps sell cars, which helps the economy. It gives the buyer a way to get around, so they can work for a living. And if they pay their bills on time, it gives them a good credit record, so that they can borrow again, maybe to buy their own home.

Answer 5

Short answer NO!.
Long answer it depends, if you really need a car and cannot afford any thing but a banger then yes, but try getting an interest free loan from the dealer or loan from a bank (then should be cheaper than a loan from a car dealer). Don't buy a new car on credit; you will lose a third of the cars value on the day you drive off in it.

Answer 6

MOst people don't have the resources not to buy a car on credit. If you have a sound contract with an acceptable interest rate, and a good car, then it may be the thing to do.

Answer 7

New cars... I dont think there's any choice. I'd suggest a bank loan NOT secured on the vehicle rather than a car finance company.

Older car's.... the same, AVOID the bad credit ? sales ploy, avoid well known places I cant name because I's probably illegal... Work out what "Y Car C" might stand for ? or "M Finance D" ? total crooks ! get a bank loan. if youre really hard up, get £200 and buy a 1.1 fiesta from a small ad' and drive it till you save up or fix your credit rating enought to get a bank loan.

Answer 8

If you can't afford a car outright then get 0% credit or if you can't get that then get a bank loan as the interest rate is lower than the credit offered by the garages.

Answer 9

No - ideally if you can save up for it you will be much better - no problem with getting credit, but the problem is lenders want to lend you more than you can affford to pay back - and look carefully at the interest rates - especially the APRs. That gleaming shiny car isn't yours until it is fully paid for.

Answer 10

that's the way most people today buy a car,but its like paying for twice once you finally do get it payed for,but not everyone has the funds to go out and pay cash for one, it would be nice if we all had the money to do it with but we don't ,as far as it being a good idea,sometimes it not a idea,its the only choice we have to make but as long as you can make the payments on it you,ll be ok,good luck i hope this help,s.

Answer 11

Only if its interest free for say four years or so
- do not buy from yes car credit