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

[Bookwormlux1]

It depends on what you want to use the vehicle for. If I want to use the vehicle for transportation business a loan is a good option. Most people go for hire purchase. Sincerely I do not see any difference between the two.

There is a real difference when someone decides to hire a bus, especially if it is someone that is close to you. You do not get to pay much money, also if anything happens, they would consider and not let you pay back fully unlike loans.

 

[Iamsodex]

Taking a loan to purchase a car will only be a wise decision if it's intended towards making profit, perhaps using it for Uber to make money. If the car isnt for business sake then you need to ensure you have a solid plan to repay the loan in a way that won't affect other necessary finances.

 

[Sheun450]

It depends on the purpose of which someone purchase the car. If I can I meant to be use for business it is a wise decision to take the loan but if It's just for flexing without any aim of buying it then we can say It a foolish idea

 

[Klismannm12]

Taking a loan to buy a car is a very bad decision but you should not try doing it unless you want to do business with a car if you intend is in the car to run over or do something that would be bringing money to you at the end of the day then it's advisable but other thing apart from something that gets you money at the end of the day with a car then it should be considered a bad idea.

 

[Smithkid]

Like I have advised people several times, never take a loan to buy a car. Car is not a trusted property because a car may get lost tomorrow and the loan we hang on your neck. The car can also be involved in an accident and of course the loan we also have going to neck. I always advise people also, the best condition to take a loan is if you want to use it on landed properties.

 

[Enzymada]

I don't either, but by the same token someone has to buy those cars brand new and take the depreciation hit on them for us to be able to buy a decent used car.

It's certainly not a smart thing for an individual to do in the current situation, but it's not sustainable for no one to do it ever.

 

[jimmann247]

A lot of bankers that drive flashy car are buying them on loan, I have a friend who work in bank, he said they will make loan available for you and advise you to take loan and get a good car, because they don't want their customers to look down on them, especially when you attain a particular position as a banker.

 

[Miracles04]

It depends on the income though.

It would be unwise to buy a car worth 10 million naira, when you only make 1.2 million naira per annum; it will take you forever to pay back the loan. However, if you make 20 million a year, and you need to, per job requirements, be able move around quickly and arrive at work on time, then investing in a car, with a bank loan, is not a bad thing, 'cos if you wait till when you'd have 10 million cash in hand, then, my friend, you will wait a long time.

 

[Abelcairo43]

If we don't have money, we take a loan and buy a car from a bank. Every time there is a problem that there will be a debt, we will pay it. We should not loan money. If we loan money, we should repay it on time. We should have some income so that we can pay the loan on time. Loan money becomes a problem with For us.

 

[Ub40]

To me taking loan to get a car is not a problem. I am concerned with the purpose of buying the car. For instance if the car is for commercial purposes, to me it's ok, because you can get your car maintenance money from the commercial use of it. But if you buy the car just for personal use, this could be risky as you will be needing other money to maintain it which increase your expenses, even when the car is not bringing in money. But if you can cope with it, there is no problem taking loan to get a car, whether for commercial or personal purposes. This is just my take.

 

[Godleads1]

Normally, it is wrong to buy a car through loan because since your work couldn't buy it, your work can't pay back the loan. But it's acceptable to buy a car for business like the transportation if goods and people from one place to the other.

 

[Folaham]

Som

People take loans to buy cars and there is nothing wrong about it as long as their salary can be able to service that loan over the period of repayment. This idea of buying luxuries just for business purposes alone doesn't look okay for me. You should live a good and enjoyable life as long as you are earning the money.

Some businesses needs car to drive the ambition and not owning one might slow the progress of such businesses. At this point it is wise enough for such business owner to take up the option a car loan which is meant to improve on the productivity and in return improve on their sales.
Water bottling and sachet water business that is common around us didn't look to tap into this opportunity. Many are times you will their vehicles broke down with goods in transit and might not be able to meet up with their customers requests. They in turn lose some customers and gaining them back becomes difficult.
Car loan to aid business growth is adviseable

 

[Keibah]

Personally, I would not do that. However, I've seen cases where this works out real fine. Most times, it is with people who earn a salary every month. A certain percentage is taken out of their salary until they pay up completely. This is to say that if you can afford the inconvenience, then you can do that.

 

[Milz]

There is a real difference when someone decides to hire a bus, especially if it is someone that is close to you. You do not get to pay much money, also if anything happens, they would consider and not let you pay back fully unlike loans.

There is no difference. The truth is that in hire purchase, you pay above the original price of the vehicle. The extra money paid serves as interest to the seller. Same thing applies to bank loans.

 

[Bookwormlux1]

There is no difference. The truth is that in hire purchase, you pay above the original price of the vehicle. The extra money paid serves as interest to the seller. Same thing applies to bank loans.

With a loan for instance, if something happens, you would repay the loan and still look for money to repair the damage. That is double losses. If it is someone you know, he can easily consider, that's where the difference comes into play.

 

[Frank]

Som

Some businesses needs car to drive the ambition and not owning one might slow the progress of such businesses. At this point it is wise enough for such business owner to take up the option a car loan which is meant to improve on the productivity and in return improve on their sales.
Water bottling and sachet water business that is common around us didn't look to tap into this opportunity. Many are times you will their vehicles broke down with goods in transit and might not be able to meet up with their customers requests. They in turn lose some customers and gaining them back becomes difficult.
Car loan to aid business growth is adviseable

Some water bottling companies didn't tap into this idea of borrowing money to buy a car because they may have a loan that they are servicing already. Probably they borrowed to buy water heating machines or similar machines and would be careful about borrowing more to buy a new car.

 

[Milz]

With a loan for instance, if something happens, you would repay the loan and still look for money to repair the damage. That is double losses. If it is someone you know, he can easily consider, that's where the difference comes into play.

If you were in the transport business, you would understand that in hire purchase, you are responsible for anything that happens to the vehicle. The seller only wants you to pay him a certain amount every month or week.

 

[Davis]

From my own view... Taking a loan to buy a car is wrong.
I advice taking loan only for the sake of business...

Nb: except the car is bought for business purpose

 

[Bookwormlux1]

If you were in the transport business, you would understand that in hire purchase, you are responsible for anything that happens to the vehicle. The seller only wants you to pay him a certain amount every month or week.

That would be a much better thing than taking a loan where the lender has got no business with whatever you may have used the money for, not to talk of trying to explain what really happened in case of a damage to let them know why it would be difficult to repay.

 

[Milz]

That would be a much better thing than taking a loan where the lender has got no business with whatever you may have used the money for, not to talk of trying to explain what really happened in case of a damage to let them know why it would be difficult to repay.

Now I get your point. I was looking at the aspect of vehicle purchase for transport business. I have witness a lot of it happen that why I have been comparing both loans and higher purchase.