so I am in the market for a new car, about $24,000.. I can get a 3.9 % finance for 36 months. I can put $10,000 down.
I can put those $10,000 in my bank and make 5% interest. Will I save some money by doing so, or am I better off putting those $10,000 as down payment for the car?
2007-11-28 06:51:49 · 5 answers · asked by Luis V 1 in Business & Finance ➔ Credit
Heybulldog is right. An enormous amount of money is made from interest in this country. Do you want to be on the giving or receiving end of that?
2007-11-28 07:16:20 · answer #1 · answered by Pragmatism Please 7 · 1⤊ 0⤋
You are better off buying a $10000 car with your hard earned cash. Why would you want to pay interest on a car that is losing value? The depreciation on the car will wipe out your bank's 5% yield.
Pay for your car with cash. When you get tired of that car, save up some more money and buy a better one. Repeat the process until you finally get the car you want.
2007-11-28 07:32:55 · answer #2 · answered by Debt Slayer 4 · 1⤊ 0⤋
"but at what point to a draw a line? And how do I do that?" The line should have been drawn a long time ago. At this point, you need to either tell them that enough is enough, and you will not be lending them any more money until they pay you back what they already owe you... or continue to let them take advantage of you. As for them driving your car, that's simple. Stop giving them the keys (or require they pay you for gas before you hand them over). Or, alternatively, stop putting gas in it, and take the bus. I would also suggest that you find an apartment. You say you moved home "to save money", but the reality is you're not saving anything.
2016-03-15 02:12:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Go to bankrate.com to view an interest calculator. Calculate the interest you will make for a period of 36 months and then choose an auto loan calculator. View the interest you will pay over a 36 month period. Then, figure the interest paid over a 36 month loan on the $14,000 balance (after you put the $10,000 down). See which works in your best interest.
2007-11-28 06:56:29 · answer #4 · answered by benvanzile 4 · 0⤊ 0⤋
Get a good used card for 10 k. It'll get better gas mileage if it's not dragging a payment book behind it.
Take what would have bee your payments in the bank.
No payments = cash in the bank.
2007-11-28 07:10:49 · answer #5 · answered by heybulldog 5 · 1⤊ 0⤋
Cash is KING... the more liquid cash you have the better you are. If you put it in the bank, you can still use it to pay the car if needed.
2007-11-28 06:58:10 · answer #6 · answered by bgpnst2 1 · 0⤊ 0⤋