Buying a car, brand new through bank loan or old one through cash?

January 13, 2012 | By Fitz | Filed in: General Information, Loans, Debts & Credit Cards, Personal Finance.

Im an OFW and our family badly need a car that we can use here in the middle east. Th cost of public transportation here is very expensive.

I need your suggestion/opinion which way is better- to get a brand new model using a bank loan and pay it for 5 years or get an older model and pay it in cash.

But here’s the situation, if i will just get the older model i need to wait for a longer time to fund my purchase.

I don’t have the money at this time. I am tempted to just go with the bank loan but my mind is reminding me that it is a bad decision. If i were you, what will you choose?

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One Response to “Buying a car, brand new through bank loan or old one through cash?”

  1. bluepeso says:

    in buying things/properties full payment would be a good option – but you would want to consider also your current situation

    do you really need the car right now?
    how much would be the cost difference of getting a loan for the car and public transpo in span of 5 years?
    is it only for status symbol?

    remember car would be a asset to you or liabilities depends on your purpose
    if you could afford the monthly payment for the car and you may think that you could save compare with public transpo that would be better.

    think think think šŸ˜€

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