Overhaulin'

Thinking about buying a car, is it better to finance or buy it with cash?

Okay i am thinking about buying my first car and it will probably be a used car and the price range being around $3000 to $5000. Around the time of purchasing this "car" i should have close to $3200 to $3500 saved.I have not decided on a car and my question is : would it be better to buy the car with the money i have saved or upgrade and finance the car that is around the top of my range ($5000)and pay monthly payments?

Public Comments

1. If you finance you could use the money that you have as a down payment therefore allowing you to get a nicer car. However if you buy with cash you have more power to negotiate in my opinion. If you find a car for a certain price and wave cash in someones face they will usually bargain.
2. It all depends on what you are wanting to do. If you already have credit established & just want to pay cash then go for it. But at the same time if you don't have any credit established then now would be a good time to do it. Later on down the road you are going to want to get another vehicle that cost a little more & is nicer, therefore if you have credit you can go & finance it instead of having to save money to buy it, which is probably going to take longer. If you go & put down $2000-3000 they are going to look at you has a serious buyer & not somebody wasting there time & yours. So I would say go ahead & use some of what you have as a downpayment & save the rest for something else. You never no when you may need some of that money. Like car repairs, purchasing a house. etc..
3. Buy you a pre 1985 Mercedes diesel,it will get up to 41 mpg on diesel,and will burn waste oil.
4. whatever you decide to do, make sure you get it inspected by the models dealership before you sign anything. Warranties and vehicle certifications are a big plus. As far as yer question goes, i feel it's always better to own the stuff you have verses paying for something monthly that is decreasing in value with every mile you drive it.
5. If you finance a car, you will pay considerably more over the length of the contract because you'll be paying interest in additional to the principal amount on the loan.