what do you think of people who does loans with the bank to buy themsleves a new car?

Question

do you understand why some people wnat to have a nice car and then borrow money from the banK?
it doesn't have to be big money but just a loan for a car u know;
ive got a friends who does it.
then others friends who think that if you don't have the cash then you shouldnt borrow money to the bank to be able to buy yourself a new car.
i'll tell you what i think when i chose an answer

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Answer 1

Some people are not very good at saving money (like me) but can afford to pay out a lumpsum each month, so getting a loan is like an easy way of not saving the moey yourself, or just getting th money quicker. Then you pay it back at the rate you can afford, or could have afforded to save each month. Sometimes loans are for simplicity aswell.

Answer 2

I think a lot of people buy cars on credit because they either want it or need it...

If you need it now there's not much you can do - as long as you can afford the payments and the interest is fair (and is it ever fair :S) then go ahead and get finance...

I myself am going to save up for my car I have about £700 put away that I can use for the car and I can afford to put away about £100 a month so in 12 months that will be £1200 + the £700 savings = £1900 (plus interest) - this way I am making the interest work for me and hae no debt over my head.

I feel that if you can afford the payments you can afford to save them!

Say a car costs £20 per week on one of those massive interest deals well save the £80 a month until you can afford a car as long as it's reliable and gets you from A-B that's all you need

GOOD LUCK !

Answer 3

Getting a loan to finance a car is OK if that is the only way you can afford to buy it and need a car to get to work. But it is better to save up your money and pay cash, even if it means buying a smaller older car or driving a clunker a few more years to save money.

Way to many people when car shopping don't look at the price, they look at the monthly payments to see if they can afford the car. That is a good way to end up owing more than the car is worth a few years down the road.

Answer 4

Its sometimes cheaper in the long run to get another car than to try and keep an older model on the road. Car maintenance is not a cheap game to keep playing. As soon as you get one thing put right - something else goes wrong, and its sods law each repair will cost approx £300.00.

Time to get rid and get a bank loan for another, reliable, motor.

Your friends who think you shouldnt have bank loans for a car, must be very lucky to be able to just change a car when its going give up and die. Or perhaps they just live in a dream world.

Answer 5

Its an individual thing personally buy what you can pay for , but if you can pay it back and want to pay all the interest that goes with it then your choice. Banks are usually better than finance companys . Cars are a necessity for work etc , so I am quite happy with whatever we have as long as it goes and is safe and insured, some just want to show off in the great big 4x4, ok if you are a farmer, a waste of money if you live in the city. Most people are driving round in cars they dont really own, but their choice, earn the money and waste it if you want.

Answer 6

If nobody ever got loans, there would be no such thing as good "credit" or bad "credit".

Not everyone that gets a loan can't afford to pay for the car flat out. Some people do it to raise their credit score, and we all know how important good credit is.

So, saying that people who don't have the money to buy new cars shouldn't get loans is like saying that people who don't have the money to buy new homes shouldn't get Mortgages.

Don't we all need a place to live!

Answer 7

That's what loans are there for. To say that people shouldn't borrow money who don't have the cash is absurd. You wouldn't get a loan in the first place if you had the cash would you. It would take ages to save for a car so for people who want or need one soon, its a good idea as long as the interest rate is ok. I think of the interest as a price for not having to wait a couple of years.

Answer 8

I don't think buying a NEW car is smart even if you have the cash. It will lose over half it value in 4 years. It could lose 20% of its value just by signing the paperwork.

I you take the average car payment and put it in a jar for 2 years, you can buy the car used with the money from the jar.

Answer 9

Borrowing money for anything costs money (interest). If you can be free from paying interest, it is amazing how much more money you have.

Some things often require that you borrow money in order to ever afford to purchase it...a house is an example. Other things you can save for and then purchase when you have the money saved...a TV for example.

There is nothing wrong with the proper use of credit (borrowing). However, many people think they "need" to purchase something right away. Often they confuse "wants" with "needs".

Answer 10

I think it's absurd to take huge loans to have a 'new car'. Buy what you can afford WITHOUT the loan. Interest rates on car loans are next to legal thievery, and leasing isn't much different.

Last new car I bought I put on my Discover Card and paid the bill when it arrived in the mail.