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

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?

Tags: bank loan, car loan

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

1. bluepeso says:

   February 24, 2012 at 9:53 am

   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 😀