Overhaulin' - Is it better to buy a car $ 5000 cash or credit ?

Is it better to buy a car $ 5000 cash or credit ?

Hi there, I need to buy a second hand car, I want to spend $ 5000 max and I was wondering if it was better paying cash or adding the amount on top of my house loan ? A friend told me that maybe credit would be better coz $ 5000 is so small I wouldn't feel it on a 30 years loan. I prefer to buy cash, and it's out of the way. Thanks for the advice.

Public Comments

if you have it, use cash. ALWAYS.
Cash, why pay interest when you dont have to
Let's say you do a three year loan for a vehicle, at 10%. You're paying $1,500 "rent" on the money, or $6,500 for your $5,000 car. Cash.
Brother if you have the cash to pay for the car, i will advice you pay cash, paying cash will help you to save money, because credit will Always go with interest...
If you have the cash, then paying cash is a good idea. If you are borrowing the money, either on a car loan or a home loan, then you should finance the car, not add it to your 30 years mortgage. Assuming a 3% interest rate, and a 30 year mortgage, you would end up paying $2588.87 in interest over the 30 years. You would be paying for the car for years after it was gone, I doubt that you would keep a car 30 years. Finance the car as a car loan, it will be cheaper in the long run than adding it to your home loan.