Yes definitely there are times when it makes sense. If you can get a 0% interest loan, or anything under 2-3% really, you should take it. You can do other things with your money then, like invest it, or keep it more liquid for emergencies.
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Why is financing a car a bad idea?
Financing a Car May be a Bad Idea. All cars depreciate. … When you finance a car or truck, it is guaranteed that you will owe more than the car is worth the second you drive off the lot. If you ever have to sell the car or get in a wreck, you owe more than what you can get for it.
Is financing a used car a bad idea Reddit?
Most ppl advise against financing a car like that because most ppl can’t handle it and end up digging themselves into a hole. My only advice would be doing no more than a 36 month loan. Lots of times you can get a better interest rate if you cap yourself at 36 months.13 oct. 2018
Is financing a car smart?
Higher Overall Cost – When you finance a car, you’ll pay more for it than you would if you purchased it outright – that’s just a fact. The interest you pay on your loan adds up – so financing a car will almost always lead to a higher overall cost, as compared to a cash-only purchase.6 avr. 2017
Are car payments dumb?
As long as you keep a car payment, you’re going to be mediocre in your finances. It’s just stupid. … The problem starts with longer auto loans, which can really eat up a consumer’s bank account. Ramsey cites a U.S. Bureau of Labor & Statistics stat that says more than 80% of all U.S. car loans are longer than four years.28 jan. 2010
Is it better to finance or pay cash for a car Reddit?
Finance it for a shorter amount of time and put a big downpayment. Paying cash upfront is ALWAYS cheaper than taking out a loan. Just make sure you have enough of an emergency fund leftover. Unless the interest is below what you can earn with the money…
Does financing a car build credit?
Ultimately, a car loan does not build credit; however, you can use the car loan to help increase your score. … It increases your credit history. Provided you don’t have any late or missed payments, this increase can help build your score.22 avr. 2020
Does it ever make sense to finance a car?
If you have solid credit and can qualify for a low interest rate on a car loan, it may make sense to invest the cash you’ve saved and finance the purchase of your car. If the return on your investments is higher than the interest rate you’d pay on your auto loan, you could come out ahead, even while you pay interest.19 déc. 2020
What does Dave Ramsey say about buying a car?
Is It Ever Okay to Buy a New Car? As a general rule of thumb, the total value of your vehicles (anything with a motor in it) should never be more than half of your annual household income. Dave doesn’t recommend buying a new car—ever—until your net worth is more than $1 million.1 jui. 2021
How long should you finance a car Reddit?
Almost always 72, 84 in second. AFter that are 48 or 60 if it’s an older vehicle or higher mileage. I see mostly 60 and 72 months. I’ve seen a couple 84 months.
How do you finance a car?
1. Check your credit score.
2. Figure out your budget.
3. Learn the car-buying lingo.
4. Pick from two options: getting a loan or getting a lease.
5. Research financing options.
6. Compare all the numbers, not just monthly payments.
7. Apply for financing.
8. Bring your pre-approval to the car dealership.
Is it OK to finance a car?
Financing a car may be a good idea when: You want to drive a newer car you’d be unable to save up enough cash for in a reasonable amount of time. The interest rate is low, so the extra costs won’t add much to the overall cost of the vehicle. The regular payments won’t add stress to your current or upcoming budget.19 oct. 2020
How much should you put down on a $12000 car?
The vehicle’s price determines how much cash you should put downVehicle Price15% Down25% Down$8,000$1,200$2,000$10,000$1,500$2,500$12,000$1,800$3,000$14,000$2,100$3,5009 autres lignes
What credit score is needed to buy a car?
661
What is a good APR for a car loan?
What is a good APR for a car loan with my credit score and desired vehicle? If you have excellent credit (750 or higher), the average auto loan rates are 5.07% for a new car and 5.32% for a used car. If you have good credit (700-749), the average auto loan rates are 6.02% for a new car and 6.27% for a used car.