Overhaulin'

Is it a good decison to buy a new car in cash?

In college, if i finance a car then i'll have high interest rates, I can save up the money in a little les than a year if everything goes right. Its a pontiac G6 and is around 20 Grand

Public Comments

1. I would never buy a new car, the second you get it home its already lost a few thousand in value and just keeps going down. You can buy a vary nice used car for a much better price and if you only drive it for a year or two you can often sell it for around the same price you payed for it!
2. NNNNNNNNNNNNOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!! THAT WOULD BE HORRIIBLE!!!
3. If you can do it, yes. If you pay in full, with cash you wont have to make payments on the car price. But how long would it take you to save upto even 40k? You could get a good used car for a lot less.
4. We have paid for new cars in cash and it is the best feeling! You have a brand new car and no car payments. If you can do it. Go for it.
5. Brilliant to save and use cash, thereby saving tons of interest. But smarter to buy a newer used car rather than new. They lose half their value when you drive off the lot.
6. No, with American cars that depreciate very quickly..better to buy a 1-2 year old one in good condition..you will save thousands!
7. Pay as little as you can per month. lease if you can.
8. I would look for a used one less than a year old. You'll save tons of green backs.
9. If you offer cash you get a better price.Money talks.You avoid all those interest rates.And you don't have to purchase anything but liability insurance and that is alot cheaper
10. I would recommend the used car idea. I would recommend you take your mechanic with you to inspect every inch of the car. I paid cash for a used car and did what I just told you and had no problems. Then when I sold the car I made more money then I bought it for. I put some good work in it.
11. NO i wouldn't because it might not be the perfect car that u want and u would be wasting money.
12. If you have good credit you can get a low interest rate. If you don't have good credit then you need to build some credit,you might want to buy a house one day so build your credit. I also agree with the others i would buy a good used car before a new one unless you just want a new one.
13. I bought my 2000 Camaro in August of 2000 for cash. Took about 20 minutes, and I drove home with it. I had no choice, it was the only way to get to work the next day after I nuked the bearings on my truck. It definitely makes the purchase a lot faster. It won't do much for your credit, tho. For that, I usually go get a personal loan, and sit on the money, using it to pay back the loan for a while, and then pay it off a month or two early.
14. It can be a good decision to pay for a car in cash. I leave the new versus used up to you (new cars lose value quickly - but it depends on the value you place on having a new car versus an old car - so if it is worth $3000 dollars to you than a new car may overrule a used car.) Now as to the cash part, if you can do without the car for now, and you aren't paying a lot of maintence costs on another car, then it makes sense to wait and pay cash (especially considering that you invest your money in some cd's right now and get 5% return - will go even higher if the fed raises rates again which is expected.) Calculating interest you recieve versus interst you pay shoudl not be too hard. After you do that you need to consider other costs that you will incur with and without the car and factor those into the decision: money for bus, cabs, or maintence on an older car & even gas on the older car if the older car got worse gas mileage than the newer car, higher taxes on a new car, higher insurance on a new car, etc.
15. You'll save a lot of money by paying cash. One thing to consider. Many manufacturers will offer a rebate for financing the car with them. For example, Ford is offering $1000.00 on new Fusions if you finance through Ford Credit. I just bought one and was going to pay cash. Instead, I put down 75% and financed the rest for 3 years. When the first payment came due, I paid the loan off in full. I paid about $50.00 in interest charges for the month but got the $1,000.00 rebate. Net savings to me: $950.00 Putting down 75% guarantees that you'll be approved for the loan even if your credit is crap. The car companies hate this, but it's all perfectly legal.
16. If you got it, go for it! Wish I could.