Overhaulin'

Do people have to get car loans to buy a new car?

I just want to put a down payment of a few thousand dollars (I have it), then pay monthly payments. Do I have to get a car loan? I dont know much about cars, i'm learning.

Public Comments

1. Yes, you have to get a car loan.
2. The real question is: Can I get a car loan? If you have the credit history, income, & the proper income to debt ratio, then you can get a car loan. If you don't think you qualify for a loan, then you'll have to get a co-signer. A few thousand bucks can get you a decent used car, but not a great one. Good ones cost more than a few thousand bucks. This web site below has great info on the proper way to get car loans and a payment calculator in there too. I'm an old cuss and I have bought plenty of new cars on loan. Good luck!
3. Yes. The car dealer isn't full of money to buy the car from the maker. they have to borrow money to purchase the cars called "Flooring". It's a monthly fee paid to "Floor" the car on the car lot/showroom. Then when you purchase the car from the dealer, they clear the "Flooring" loan to the loan you have. This is how the dealers finally receive their profit by being fully paid with your loan.
4. No, you can take the money you have a for down payment and toss it in a drawer, then put your monthly payment in there until you have enough to get the car you want, and then pay cash for it.
5. If you dont have the cash money to pay for it in full then yes it is required. Unless its from a private party.