Overhaulin'

Is it better to buy finace a used car or pay cash for first car?

I spoke to a car dealer agent on the phone and I told him had only 4000 to use for the car, first month insurance and registration and other fees. He told me I could put a down paymet and pay around a hundred a month if I take out a car loan and establish credit. He also told me if I paid cheaper for a car it may not last long. Im on a tight budget of 700 a month and going to college, and will have to pay abut 180 a month in studnet loans after graduating.Im 22 so my insuance will be high being that it will be under my name(no family policy available) Would it better for me to buy myused car cash or try to finace it (used ) for and get a more newer model?

Public Comments

1. I think purchaing it outright with cash. Its only your first car- as long as it gets you from a to b. You dont want to be having to pay of the loan for ages.
2. It's always better to buy out-right with cash... but in this case I think you'll need a reliable vehicle, so I'd say go with the later! What good is owning your car if you have to save up to pay for repairs! Good luck
3. get a used car for your first car, its cheaper and you dont must pay any credits. If you have a crash doesn't matter with used car but with a new car mhhh you gonna get .........
4. First of all this is an important step in your life. I see you have some credit by having the student loans however, in the future you may need something called "car credit" it's different same as credit card credit and consumer loan credit. If you have a tight budget and you can afford the extra payment you may want to buy a good used car. If you don't have a good mechanic that you can afford buying any old car wont do for you. If you can afford and $150-200 car payment I say from my personal opinion make a $1500 down payment and have a short-term loan. If not you should go to a local auction and see if there is anything there that interests you. Buying a used car cash you should factor in a repair bill or two every six months or so. If financing make sure you're buying certified used and you should be ok for your first couple of years. Hope this helps you out in your decision process. Remember only you can make the right choice for yourself...
5. I would pay cash for it. The interest that some places charge is way to high.
6. buy a used car out right, but make sure you take the car to a respectable car repair shop,before you buy it, to look at it to make sure you are not buying a piece of junk.
7. debt is never a good idea, neither is telling a car seller how much you have. they then adjust the car up to the money available-giving you a worse deal. consider all the costs up front to drive it away. Unless it's free on road there will be some, and they can eat into your cash. keep money back for repairs-don't pay for extra warranty on a used car-warranty ONLY covers bad manufacture and workmanship, NOT wear & tear, which is where most troubles come from on aged vehicles. Expect them to lie and be inclined to cheat-selling old cars requires those skills. a private purchase still requires someone to inspect it properly, but you're able to get a better car for the cash--IFF they are honest, where it's impossible from a dealer. take your time, look around without your wallet for as long as you can. don't rush, there's always another one you can have.
8. NOOOOOO!!!! Do not finance a used car!!! They kill you with intrest!!! Never buy a used car on finance - it usually costs the same as a brand new car in the end!!! Also, beware of that dealer....they are trying to trick you into something. Buy a used car outright, and use it as a trade on a brand new car after you graduate. At that time you will qualify for a first time buyer, and get a better rate. Checkout Craigslist.com and search for local cars in your area. I would also suggest buying a used Subaru or Jeep - they are very reliable and live forever. Good Luck
9. I would buy it outright, and do enough research on the vehicle before you do buy it. I can't remember the website you can enter the vehicle's VIN # and find out all about the car, accidents it may have been in, maintenance, etc, before you actually buy it. Used car dealers can provide that printout on the vehicle for you before you pay for it. (I got one before I bought my 2002 Used New Beetle from a Dealer over a year ago) First off I would put away more than one month of insurance. Insurance can run up to $130.00 plus a month depending on the coverage, carrier. And deduct the registration approximate amount, taxes, fees as close as you can. See what you have left. Then look for a gas saving small car. Many people sell reliable good transportation cars, and private parties are a often a good source. Things happen in peoples lives...and often you can get a great deal, but you have to look, be sharp, and patient. Ask the right questions. Take someone with you that is savvy in this area. Good Luck