How did you pay for your car?

I just pay outright, there's no point paying for something, then paying more as your credit history gets tarnished and you have to pay the bank/whoever interest
 
bigsharn said:
I just pay outright, there's no point paying for something, then paying more as your credit history gets tarnished and you have to pay the bank/whoever interest
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Incorrect on two counts imo. I'll use myself as an example.

I purchased a car for $10k last month, financed at 3.9% over 5 years. I could have paid cash; however, my tax free savings account is currently paying 3.15%. Fast forward 6-12 months when interest rates increase. I won't be far off in equalling (or even beating) the 3.9% I'm paying on my loan and have the added security of $10k at my disposal should I need it in an emergency.

Financing can work. The fact that most here are OMG financing or "I don't own it unless I paid case" (which is technically correct) etc is silly imo as you could be making money elsewhere or have a fund for emergencies, job loss etc. I would image that most that pay a decent amount of cash for a car (5k or above) probably don't own a house or have a family (as a very general observation). Some will of course.

Having a loan is not going to tarnish your credit unless you have borrowed a significant percentage of your income or you have lots of other debt. For me as a newcomer to Canada having a little debt is going to help be built my credit rating.
 
One 3rd cash, the rest a loan, but in future i will likely do it outright or have only a small loan over a years period max

The trouble with finance, is you paying back more money, i borrowed 7000 and paid back 8300 over 5 years, not bad, but i was still paying off my car despite owning it years, i've only this year paid off the loan in full

I like my car and enjoy driving it so no problem, but had i grown not to like it or got tired of it after a year or two, seeing that money go out every month would no doubt not have bought much of a smile, also you never know whats round the corner and mortgage aside i dont really want to be tied into such a long term commitment again
 
I'm hoping I'm not alone here but one of the reasons I buy my cars cash is simply that I don't understand the various loans and finance options out there.

Reading parts of this thread and they might as well have been written in a different language :o
 
Rotty said:
because APRs tend to look skewed when looking at long term finance
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You would repay the capital over the same period, the APR's are the comparable figure in both cases. You could have achieved 3-4% APR, which perhaps isnt worth the hassle for you given that the monetary value of this saving would be fairly small in the scheme of things. I appreciate that the unsecured route suits many people better. :)
 
jamief said:
Various methods - the cheaper cars I've paid cash. More expensive ones a combination of cash & personal loan. Have also leased.
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And are currently leasing I believe... ;)

http://www.vwaudiforum.co.uk/forum/showthread.php?t=97205

For those that can't read the thread as not members, our very own jamief is leasing a new Golf MkVI diesel! Kept that quiet didn't ya ;).



Not gonna start a new car thread then :confused:.
 
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