I am thinking about buying a car. The car cost 15, 000 dollars. Do I pay for the car in cash or do I leave the cash in a Money Market account and let it accrue intrest at 5% while paying the car off in three years.
2007-06-26 11:20:16 · 5 answers · asked by iprfl 2 in Business & Finance ➔ Personal Finance
Auto finance is what I do for a living and I agree with the first poster.
If your credit score is below 720, put $5,000.00 down and finance the rest for 24-months. Make at least 12-payments before you pay it off.
This will raise you score approx. 75-points.
If your credit is above 720, then you don't need the car loan to help it so just pay cash.
2007-06-26 12:02:17 · answer #1 · answered by ? 7 · 0⤊ 1⤋
NO ONE can afford car payments. You you have the money, it is ALWAYS better to pay cash. You can always put the amount you would have had as a car payment back in the Money Market account. If you get hit by unexpected problems, the Money Market won't reposes the car.
2007-06-26 12:54:59 · answer #2 · answered by STEVEN F 7 · 0⤊ 1⤋
You need to look at the interest rate you will be paying. If you have a high credit score, you don't need the loan to help boost it, I would pay cash. If you need to boost your score because it is under 700, I would consider losing money on the investment and carry the car loan. I would also try to pay off quicker than 3 years.
2007-06-26 11:23:29 · answer #3 · answered by halestrm 6 · 2⤊ 1⤋
I don't know.
Maybe you could see what others are doing
at a social loan club like prosper.
2007-06-26 11:26:15 · answer #4 · answered by 1090 4 · 1⤊ 1⤋
What ever you do, don't buy a Saturn.
2007-06-26 11:27:43 · answer #5 · answered by Anonymous · 0⤊ 1⤋