Pretty much a bit of both. I don't have a company car and never will....because i'll never work for anyone else. I have issues with authority figures and taking orders i think.
.
Why pay cash? Do you not have mortgages etc?
Personally I finance my cars, they are depreciating assets. I'd rather put my cash to better use..
Finance. If I had 20 odd grand lying round it would be going into a house
In an ideal world surely cash is better for the following reasons:
- Great bargaining tool
- You wont be paying APR
- One less thing to worry about
If you have the money today say £20 or £20k loan its CHEAPER to do a loan.
Do the maths on the interest you would loose by shelling out £20k cash and its marginally cheaper than loaning it and keeping the £20k in savings.
That's not true. The commission dealers can earn on finance deals through finance companies can be amazing - on a used car, it can be almost as much as their profit margin. So they'll be more than willing to negotiate a deal where you've financed it.In an ideal world surely cash is better for the following reasons:
- Great bargaining tool
Why pay interest on a loan when you don't have to?
because the cash can be invested so you earn more than the monthly payments plus the cost of borrowing the money
paying cash for a car is throwing money away
You can find several high interest deposit accounts where you can up to 15% interest, while a motor loan comes in at 6.9% (over here anyway). When you sell the car you would then be in profit, so to speak, since your interest earned would outweigh the interest paid 3:1.How or earth do you think you can do that? Interest on borrowed money will always be more than on saved.
How or earth do you think you can do that? Interest on borrowed money will always be more than on saved.
That's a ridiculous statement.
Why pay interest on a loan when you don't have to?
In an ideal world surely cash is better for the following reasons:
- Great bargaining tool
- You wont be paying APR
- One less thing to worry about
I said investing not saving -
I have a mortgage which is possibly the most expensive loan. I'd rather pay that off quicker. It makes more sense.
J.
Sorry, my mistake. I've been burned a couple of times from investments. The main one was 911. I was only 21, had saved 4 grand from my pitance wage and then lost a grand in a day. More recently as per the above and that was in a low risk investment.
But the loan/finance APR would mean you'd end up paying more surely?
Pretty much a bit of both. I don't have a company car and never will....because i'll never work for anyone else. I have issues with authority figures and taking orders i think.
Anyway i put half the value of the car down in cash and had the rest on finance. Its a big outlay but works a hell of a lot better if i decide to trade it in before the end of the finance term! I'd never go for the balloon payment scheme simply because you never know what the future has in store, and if you can't afford to pay that kinda money now what's to say you'll be able to down the line? Bit risky.
Why use my money to get an depreciating asset if I can use someone elses and use my money for the important things...
Not really because you're comparing the total mortgage vs a much smaller car loan.I see what your saying but... My car loan is a lot less than my mortgage. So 3 years of interest on a car loan is a lot lesst than reducing my mortgage term by say a year for example. Although by not paying for my car in cash and paying a chunk of the mortage means I have reduced the term by around 2 years.
Does that make sense?
J.