i want to buy a car and the options i have are
get a credit card and pay monthly with that
or take out a loan. what would be the best??
2006-10-25 03:56:40 · 10 answers · asked by girl101 1 in Cars & Transportation ➔ Buying & Selling
take out a loan. keep your credit card for emergency like to fix your broken down car, or to put petrol in!
loan heaps cheaper than credit car too!
2006-10-25 03:58:44 · answer #1 · answered by Anonymous · 1⤊ 1⤋
You want to purchase your first car, right? Well, it's best to purchase something no older than 2 years, so that it is covered under a manufacturers warranty. Several manufacturers have a First time buyer program. For instance; Ford Motor Credit will approve a car loan for a "First Time Buyer" if the applicant has a steady and stable job, has no derogitory blemishes on thier credit history report, and is in a good equity position in the vehicle they want financed.
The ideal vehicle in this case would be a brand new Ford Focus. With a MSRP of about $15,900, a factory rebate of $2,500.00 and $500.00 cash from customer as down payment. This should yeild about a $250.00 monthly payment depending on the term and approved interest rate.
Everyone needs a car payment in thier credit history. I got my first vehicle at age 17 from a buy-here, pay-here lot. Had to replace the engine, and suspension, and got no credit for the monthly payments I made. You live, and you learn.
2006-10-25 04:05:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Take out a loan for sure. The interest rate you are going to get on a loan will almost every time be far better than that you will get on a credit card. Plus, when you take out a car loan and end up paying it off, your credit score will improve drastically. also with a credit card, it is not guaranteed that you will always get a certain interest rate, but with a car loan once you lock it down, you are good to go. you might need a cosigner- someone to sign the loan with you that has good credit so you can get a low interest rate- parents are usually the most popular.
2006-10-25 04:01:44 · answer #3 · answered by paulyd04 2 · 1⤊ 1⤋
If you are a first time buyer the interest is going to be high. That is a fact unless you have a co-signor. I would storngly advise against putting it on your card, because then you will still have no car credit. Then when you get your next car and want something nicer you will have a hard time and a high down payment. Pay higher interest on a lesser cost vehicle. That is always the best way to start building credit.
2006-10-25 05:10:52 · answer #4 · answered by I am Jared From Subway 3 · 0⤊ 0⤋
Neither, if you saved up money and you already know Way
hat car you are going to buy then buy it. Credit cards can get you in alot of debt do you know how your going to pay the credit card bill every month and also pay the car note? look at the inst rest on the credit card that could help.
2006-10-25 05:24:27 · answer #5 · answered by Angel 2 · 0⤊ 0⤋
take out a car loan. the payment will be more then the credit card. but you'll end up paying less in the long run. with the credit card, your intrest rate is usually about 20%, a loan will run anywhere around 5% to about 16% apr..
2006-10-25 04:00:47 · answer #6 · answered by bob1242431 2 · 1⤊ 1⤋
A secured car loan is going to be less interest, assuming your credit is OK. New car loans have low interest payments Vs used car payments. Credit Card interest can be outrageous.
2006-10-25 04:00:54 · answer #7 · answered by Anonymous · 1⤊ 1⤋
Hi i am a used car salesman and your question is real easy...your credit card interest rate is how much?? and the loan would be a what rate??.....i believe a loan rate would be much lower that the regular 18% on a card....need anymore help than write me , maybe i can help.....
2006-10-25 03:59:17 · answer #8 · answered by dillutedjuice 2 · 1⤊ 1⤋
take out a loan. save crediit cards, and, if you dont know anything about mechanics, and you are buying, your first car you got any mechanics around you family members?/ best bet is too take them with you or some body who knows about engines, mechanics saves time from buying a lemonn!!
2006-10-25 04:02:22 · answer #9 · answered by Anonymous · 1⤊ 0⤋
you got it!
2006-10-25 04:00:24 · answer #10 · answered by coolguy 1 · 0⤊ 1⤋