Comments on: Why I Took Out a Car Loan Instead of Paying Cash

By: J. Money

J. Money — Fri, 09 Oct 2015 17:00:42 +0000

I’d personally just not accept a loan that’s for more than the cost of the car! Banks will want you to do that all day long so they make more $$ off you regardless if you can afford it or not. So just don’t tempt yourself – only take out what you need! (And try local credit unions too – they typically offer lower % rates)

By: Nikia Terry

Nikia Terry — Tue, 06 Oct 2015 20:00:48 +0000

HI,

Thanks for sharing your experience i needed to hear this, what if the car is less than the car loan offered? Do you have to spend the entire loan amount on a car? Also, the money not used on a car does would you give it back to the lender?

Thanks

By: 3gf23fgt23tf23

3gf23fgt23tf23 — Tue, 12 Feb 2013 03:37:07 +0000

In reply to 20’s Finances.

You’d think being in finance this kid would be intelligent enough to not support the finance game that consumes so many poor people. But, it appears he doesn’t really care. I assume that’s because he apparently got a great deal on the car, which is probably what the price of the car SHOULD be (probably bought it right before the new models).

Instead, car manufacturers jack up the price of cars then offer 0% financing to make people think they are getting a great deal, when really they are just over-paying big time for a car.

People, don’t be stupid. If you don’t have cash in hand, you don’t buy the car. And that’s on top of having your normal 6-month slush fund. Also factor in car maintenance costs.

By: Lance @ Money Life and More

Lance @ Money Life and More — Mon, 13 Aug 2012 21:58:06 +0000

@Tom – There are a lot of people with that view, especially on personal finance blogs.
@William – I don’t blame you! Different people have different priorities.

By: William @ Drop Dead Money

William @ Drop Dead Money — Mon, 13 Aug 2012 14:07:46 +0000

Amen to that!
Scratch, scratch…

By: J. Money

J. Money — Mon, 13 Aug 2012 13:58:12 +0000

Or really hate debt ;) Some people are allergic to it.

By: tom smith

tom smith — Sun, 12 Aug 2012 17:27:38 +0000

With interest rates at an all time low you have to be financially silly or have a very German view of credit to pay cash.

By: Carol Ryder Esq.

Carol Ryder Esq. — Mon, 30 Jul 2012 14:39:04 +0000

Another way to do well on a good, well-kept used car, if you can, is knowing someone who does estate work, as I do. The cars truly are driven by “little old ladies” (I hate that term but everyone uses it in terms of buying cars-usually lying). Every one we looked at had a careful maintenance history. Most of the time, the sellers already have cars and are looking to sell Mom (or Dad’s) car, often Camry, Corolla, Civic or Accords. They usually are kind of boring looking, the heirs already have cars they prefer, and thus the heirs don’t want them, just the money. When we were at the widower’s house (not my case), we saw how meticulous he kept his garage (and we thought ours was the neatest), how he had all the records and only sold it, honestly, at that still-raw time because my friend told him someone who does a lot for underdogs was looking…I went the used route this time because I didn’t want a new car because my car kept getting banged up in the parking lots at court, where parking is very tight, people are freaked out (Arraignments share the same lot as all the other courts out here in Suffolk), and just fling their doors open wide, even when I am sitting there getting my briefcase together (and no-too crowded-cannot park far away-lot fills to the ends). It drove my husband nuts every time the Camry, which survived NYC all those years, came back with another scratch or ding (and even a cracked bumper-I think Costco on that one). So, I decided to go used, as long as it was good under the hood acc to my very reliable mechanic, and even with a few dings, as long as no major accidents. We DID try buying used before this estate came up but it was a nightmare of shifty dealers pretending to be regular owners. I also worry about buying from an actual dealer and paying extra to have peace of mind when I know I won’t ultimately get that from these so-called service contracts and warranties because I see the way they weasle out of paying. If not for these estate opportunities, I loved the idea of buying new and did that myself last time but, finally, the 97 Camry hit 5X and had 270K miles had to go. It was driven hard-into NYC 70 miles each way, and the 5 accidents were from idiots, like the illegal cabbie/jitney in Chinatown that made an illegal left between the Camry and two police cars and didn’t quite clear the Camry. However, we bought it new and took excellent care of it so it lasted that long regardless, and still looked good. When we sold it, surprisingly, to a dealer from Fla, we got the Corolla for less money than the price received for the Camry that needed a new head gasket (and mechanic said all kinds of other stuff were about to happen and was surprised someone paid that much).

By: Lance @ Money Life and More

Lance @ Money Life and More — Sun, 29 Jul 2012 14:39:42 +0000

@SB that is definitely the way to get it done!

By: J. Money

J. Money — Sun, 29 Jul 2012 14:31:28 +0000

Awesome!! That’s a killer deal indeed, I’d have taken it up myself :) I don’t mind interest-free loans when I know I can pay it off in time and keep my cash reserves strong at the same time, well done.