Taking a loan to buy a car: is it a wise decision?

[Neeta313]

Taking loans from banks it's not really a wise decision except you need to settle a pressing need. If what your taking the loan from the bank for will not benefit you or rather fetch you enough income, then it is not advisable, because you will definitely drop something valuable as collateral and if you can't pay back in time, you will have to forfiet that.

 

[Bkoks]

What do you want to use the car for? . For business , to ease transportation, or to elevate status . Think about that before u get a loan if you don't have money at the moment .if it is to elevate status ,it won't be wise to take loan .what if u can pay it back. Do you wish to take all those risk just to form what you are not ?

 

[Philip Omotayo]

Taking a loan to buy a car is not a bad idea depending on what you want to use the car for. The question is, did you want to buy the car for business purposes or leisure? If you are buying the car for business purpose, then one would know that, the car would eventually produce back the money invested on it. However, if it is for leisure, the owner would need to have a steady income where the loan organization would be removing the existing loan from. Taking loan to buy a car is totally base on income.
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Taking a loan to buy a car is not a bad idea depending on what you want to use the car for. The question is, did you want to buy the car for business purposes or leisure? If you are buying the car for business purpose, then one would know that, the car would eventually produce back the money invested on it. However, if it is for leisure, the owner would need to have a steady income where the loan organization would be removing the existing loan from. Taking loan to buy a car is totally base on income.

 

[Lawal]

Is not a good idea to collect loan and you it to buy car because car is a liabilities asset,it will always collecting money from you it not give you money unless is public transportation bus but if it is personal car where are you going to see money to pay back the loan, so for me is not a good idea to collect loan to use to car

 

[BrolySSJ]

Getting loan to buy a car isn't bad so long the car is going to add value to your life and serves as an asset and not liability.

However, you have to consider as well that cars at the end of the day depreciate very fast. I think that a car loses around 10% of its value the second that it is driven off the floor from the car dealership and therefore it is very important that when buying a car you have to make sure that you know that once you take out the loan the value of the car will continue to go down and you will still be required to pay back the full loan with interest.

 

[Tollytee]

Taking a loan to buy a car is a wise decision... If you would be using the car for transportation... With that within a short period of time you will be able to pay or if u have a good source of income...paying back won't be an issue.

 

[Profuk57]

If the car you want to buy is for personal use then it is not advisable, but if it is for commercial reasons with a well organize map out plan of how the loan taken is going to be back then it is totally advisable for you to do so.

 

[Ruthyfizy]

It's really not a bad decision if the car is used as a source of income because by so doing the loan can be paid up even before the stipulated time but taking up the loan for private use may result in challenges...

 

[Youngdee]

Purchasing a car with a loan isn’t a bad idea depending on the purpose you want to use the car for. If you have a good job that pays well it isn’t a bad idea to get a car on loan and then pay in installments. Also if you want to use the car for transportation business you can get it on loan as long as you get profit from it to pay back the loan within specific time frame.

 

[Yunus]

All depends on the vehicle you want to buy, your current cash on hand, and what you can afford in terms of payments.

 

[Planet408]

If you already have steady income, i feel it is better to save up money and buy the car later than subjecting yourself into returning a loan with its interest rate. Except if car is for transport business. But then it is advisable you calculate your risk very well before buying the car.

 

[unhappy triad]

It is not a bad idea if you can't do without the car.
You should consider your pocket.
Do you have the means to pay back?
Knowing that a car is a liability and not an asset will help you to tread wisely. Except the car is going to be used for business then it could turn an asset

 

[arrain3786]

if it is a little bit of input, go ahead and have it. So, the rule is straightforward. You will be buying an asset that will depreciate and you will be incurring interest on that. So, opt for a car loan if the car is an input to something that will help you earn more or do your job better.

 

[Lyrrex]

That's another angle. If you are taking the loan to purchase a car that you will put on the road, then it is a great idea, but even at that point. I still don't see it as doing what is right and okay. You should buy such car with your saved funds and borrow little should anything happen.

Yea. Because a car is more of a liability, regardless of it's use.

 

[Kaindio Agnes Wanja]

Is it advisable to take a loan and purchase a car when you don't have the money to buy it at that moment. You would now be making payments either monthly or weekly until you are able to complete the payment.
What do you think?

This will depend on the purpose of the car.
If its buying car for luxury the it is not wise to take a loan to buy it because you will suffer in paying of that loan.
If it is a business car it okey to take loan and buy it knowing that at the end of the day it brings money on the table and it can pay the loan itself without including any other source of income

 

[Halexcity]

Taking a loan to buy a car is sometimes a wise decision because it depends on the persons nature of job and distance to work or office. Instead of spending heavily on transport u can just request for loan so far u will return it

 

[springtech]

Is it advisable to take a loan and purchase a car when you don't have the money to buy it at that moment. You would now be making payments either monthly or weekly until you are able to complete the payment.
What do you think?

I personally wouldn't do this.
What would i be thinking by doing such.
I would rather wait, discipline myself in terms of expenses, save up, not minding how long it takes me to do so then use the savings to purchase the car.

Car in my opinion is not an asset but a liability. So why would i acquire a liability using a loan?
That wouldn't be a wise decision for me.

 

[Psalmsavatar]

You just have to pay a certain amount of the total price, while the rest is paid by the bank as it loans the amount to you. ... It is not necessary for you to repay this loan at once.

 

[Kingsley]

To take a loan to buy a car depends largely on what you want to use the car for. If the car is meant for pleasure than it will be a grave error. But if the car is meant to be used for business purposes in other to generate income then I will be a good move.

 

[Rimsha kanwal]

I feel there are two or three situations wherein borrowing money to buy something is justifiable. One is the home loan - because it is a big-ticket purchase. It is a long-term borrowing, costs lower interest rates and provides some tax benefits as well.
So, in that sense, you are buying an asset that will appreciate and you will start consuming it, thereby saving the rent. So, it justifies taking a home loan. The second kind of borrowing, where you do not have a choice, is during an emergency. You do not have money and you must borrow as you cannot do anything.
The other is borrowing money for doing essential things, not necessarily for an emergency. If this car helps you do your job better, then it is an input to doing your job better. So, in that sense, it may enhance your efficiency and lead to a superior career prospect. Otherwise, if it is aspirational spending that you want to buy a car so that you can feel happy and use it some time, then defer it. And if it is a little bit of input, go ahead and have it.