I want to buy a car for 14,000. Is it better to pay with cash or take a loan out?
I don't want to spend the cash. But if a loan for 4years could be 100.00 a month payment doesnt that sound good? Full car insurance would probably be 150.00 so maybe 250.00 per mth.? What's better?
2007-02-09 03:48:46 · 14 answers · asked by aryanguenthner 1 in Business & Finance ➔ Personal Finance
If the loan includes interest, then go for the one-off cash payment.
2007-02-09 03:51:23 · answer #1 · answered by vintageprincess72 4 · 1⤊ 0⤋
Taking out and maintaining a loan will help increase your credit rating, which will in turn help you make other important purchases later in life...like buying a house. You can buy a house without a credit rating, but you will have to pay higher interest because lenders do not have a history to show that you will be a responsible Borrower. Build your credit if you have the means, if you don't and there is a chance that you won't be able to meet the expense and will default on your loan, then don't do it. I work in the mortgage industry and have to struggle with people who have no or low credit scores...it makes this process much more ddifficult and stressful and for some the idea of home ownership has to wait years until they can improve their score. If there is a possibility that you will ever want to own a home in the future, start preparing your credit for it now.
2007-02-09 03:57:11 · answer #2 · answered by nexgenjenith 2 · 0⤊ 1⤋
If you need the credit get the loan, if you have cash, then buy it cash, because then you save yourself money in interest, and since you're paying cash, you can talk them down quite a bit in the car price, make sure you mention that you're paying cash. Whenever they tell you they can't, walk away. And if anything ever happens, you can sell the car, and get more money out of it, considering you own the car and not the bank.
2007-02-09 03:54:01 · answer #3 · answered by Brandnewshoes 4 · 0⤊ 0⤋
The key is in the interest rate. Money is always worth money if invested, and if the interest rate paid is less than the money is worth to you, it is sensible to borrow the money. But do not be taken in by the zero or low interest rates quoted on new car sales -- these are always in the alternative of a cash rebate, which is actually a buy-down of the interest rate if you choose the financing option instead. The only way to tell what the real interest rate is is to use a financial calculator to do the comparison.
2007-02-09 03:54:13 · answer #4 · answered by Anonymous · 0⤊ 0⤋
CASH You will never build wealth making car payments. There is not a way to measure peace of mind.If you pay cash for things then you know you can afford them. If you only buy things you can afford why would you gives a rat's *** for your credit rating? The only exception to this would be the purchase of a house.And if you have a job and pay your bills on time you can get a mortgage.
2007-02-09 03:57:46 · answer #5 · answered by al 6 · 0⤊ 0⤋
Check your interest. What interest are you making on your money vs what would the interest rate be on the loan? If the loan is a low interest rate and you are making more interest on your savings, then go for the loan. If the interest for the loan is higher than what your savings is making I'd just pay cash and get it over with.
2007-02-09 03:53:48 · answer #6 · answered by lcritter55118 4 · 0⤊ 0⤋
Yes but you are forgetting the intrest they charge for the loan.. so in actuallity... you end up paying 2-3k more than if you would have gotten it cash. I would buy it straight out... then your only payment would be insurance. But if you dont have the cash.. then get a loan.
2007-02-09 03:52:47 · answer #7 · answered by c_leoo 4 · 0⤊ 0⤋
first a 4 yr loan would be 328.79 a month just for P&I, not including insurance or operating expenses. You haven't even told us if you have a job or how much take home pay you have or anything we need to know about you to make that decision. If you can't afford to pay the 328 and other expenses, plan on taking the bus.
2007-02-09 04:19:07 · answer #8 · answered by ttpawpaw 7 · 0⤊ 0⤋
Usually, it is better to pay cash a) because you can find better discounts for cash and b) because the interest charged on the loan will be more than the interest you earn from a deposit a/c.
However, a surer way is to find out what is the interest rate (%APR) they charge on the loan and see how reasonable it is.
2007-02-09 05:09:35 · answer #9 · answered by Anonymous · 0⤊ 0⤋
You can instanly receive a payday loan as much as $1000 employing this service: http://loans.servermatrix.org I managed to get the payday loan although I have extremely poor credit standing.
2014-07-17 01:25:52 · answer #10 · answered by Anonymous · 0⤊ 0⤋