Date: Thu, 15 Sep 2005 19:25:57 GMT From: "Intrepid Observer" <no-nonospamet> Subject: Re: Financing vs. buying for cash
"Dave Hinz" <DaveHinznospamcop.net> wrote in message news:3otvt0F7gkkhU2nospamvidual.net... > On Thu, 15 Sep 2005 19:17:28 GMT, Intrepid Observer <no-nonospamet> wrote: >> If you have the $20,000 (US) or so to spend on a new car is it wiser to >> buy >> the car for cash or take out a loan? > > Interest rates are very low right now; if you can make more money on > that money than you'll pay in interest, you come out ahead. That's > rarely if ever the case, though. > >> One salesman advised me it is better to get a loan so you pay less for >> the >> car upfront in case it is in an accident as the insurance will only pay >> up >> to the current value of the car as used/depreciated. Was he just saying >> that >> to sell me a loan or does it make real world sense? > > Insurance pays you for your loss, regardless of what you owe. So, I > think you need to find a better sales weasel. Just because a car is > totalled, also, doesn't mean you don't still owe for the full loan > amount, so he's doubly full of it. > > That said, 20 grand won't get you much of a brand new car; consider > buying a 3-year lease tradein for the most bang for your buck. But, > avoid that salesman. Well, I was thinking 20 grand after trade-in, incentives/discounts, etc. Thanks for the reply.
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