Site News - 9/23 Horn Button Rebuild 900/9000 | 9/21 Abandoned Saab Dealership
Date: 15 Sep 2005 19:21:04 GMT
From: Dave Hinz <>
Subject: Re: Financing vs. buying for cash

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. Dave Hinz

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