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

[unhappy triad]

Car can be an asset if and only if it's used to run a business or it's the business itself. Buying car for personal use only means adding liabilities. It will require maintenance. But if it's link to the business it generates min direct or indirectly thus offsetting any debts

 

[Josephjossy]

It is not adviceable to take a loan and buy a car if the car is not for commercial service like taxi etc. You don't borrow money consumption, you borrow money for production. You can borrow money and invest on a business then when the business grow you will buy the car

 

[Aotosyno]

Please don't ever take a loan to start a business or buy a car ooo.Am talking from experience and experience they say is the best teacher,when you take a loan is as if you are going from fire pot to fire you don't have rest of mind until you pay that is if you are lucky.Even if you collected the loan to buy a car for business or personal purpose if care is not taken you will sell the car at the end of the day to finish up your payment. One thing with loan is that when you start paying things will become difficult for that period and it will be like nothing is working for you.

 

[Tundeoguns1]

Taking a loan to buy a car. Is it a wise decision. Well to me I don't think taking a loan to buy a car is a good decision. I prefer to be taking public transportation or transport that buying a car with a loaned moneyed. But it's also not a bad idea except you are buying the car from a private dealer which is better than a company or firm selling it to you.

 

[Shahzad Ahmad]

I think this idea to buy a car is not a bad decision by taking loan but it depends upon your income as well as use of car. I don't have information why are you buying a car? If you take car for enjoying mean not necessary for your business then you should not buy it. You should saving first and then buy a car not make stress on yourself.

 

[Victor001]

Foremost, are you buying the car for asset or for liability purpose. If the car will turn out to generate cash for you, then there is nothing wrong in taking loan, but if its just for personal use or show off its totally not advisable.

 

[Pattertwig21]

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?

If the car is essential part of your livelihood, the cost will be worth it. You can give it a try.

 

[Setfragil]

It depends on what you need the car for, if the purpose of buying the car improves your business or affect your daily dealings seriously then you can think of getting a loan to buy a car otherwise it is not advisable thing to do so especially when it will hugely affects your monthly salary.

 

[iamgroot]

It is not wrong to seek after things that will make you happy and give contentment to you. But just to buy a car or other luxury from borrowed money ?, I don't think that is a wise move. Unless you turned that luxury as needed, if you need it because you will use it to travel to work. But if you just want to brag about your friends or acquaintances, it is a very wrong decision then.

 

[lelakil3]

"Taking a loan to buy a car" . I would say such act isn't really a wise decision. But what matters most is what would you be doing with the car that would be able to fetch money to pay back either daily or weekly

When taking a car make most a business efficient or just a job then it must like saving a time for public transportation thus is a really much needed to the family as emergency purposes keeps place, if buying a car just to be on trend like no other function maybe this is a hard decision to make.

 

[Shahzaib37]

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 is preferable if you want to do business from buying a car it make you profit. You can also run it as a business and get more income

 

[Xerryl]

It's not wise. But if the loan collected will be used to buy a car for transport business or for your own personal business such as school bus, company bus and others then, it's wise idea because it will definitely bring you a reasonable profit.

 

[Obaterof]

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. It is spending and normally, spending should not be backed by any kind of borrowing.

 

[Mastercoded]

Taking a loan to buy a car is never a good idea, or else you intent to use it for transportation. A car is not an asset, it is a liability and will depreciate with time. If it will be use for transportation, at least it will be bring income on a daily bases and this will help you reduce the burden of the loan, and paying back the loan will be faster, compare to when you use the car for leisure. Some loan company are money shark and can lead someone into depression or extra money will be added for not meeting the payment date

 

[Psalmsavatar]

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.

You're very right. It could be a liability if it won't serve any economic purpose. Using a car for a flamboyant lifestyle is not sensible at all.

 

[Shigobad20201]

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?

To me taking a loan out to purchase a new car is not adviceable but it is adviseable on one condition, If you have a big salary and it won't affect your salary if you buy the car , then you can get a loan for the car, but you don'thave enough income and you want borrow money to buy a car, you will have to sell the car later.

 

[BuchiBankz]

Taking a loan from the bank to buy a car is not the issues but what you intend to do with the car that matters, if you intend to collect a loan for the purpose of Uber its fine at least money is been generated through Uber, but if one intention is just to drive around for the purpose of showing off i don't think it's a nice idea because one is accumulating more debt to him/herself.

 

[Axad. Mrb]

Three years back Rahul (Name Changed) started his career in a Telecom company as Assistant Manager, with a good salary package. Like many new entrants in financial life, he was also of the view that now the World is in his pocket and he can live the way he wants and have a lavish lifestyle with no tensions on asking pocket Money from parents. But here destiny has some other plans, as his father was my client and he directed him to me to have an understanding on how finances works and how he should manage his money. 🙂

 

[Hamza1999]

If you opt for vehicle finance, it is secured against the car you are buying. In other words, if you don't make your payments, the finance house takes the car. Since a car loan is deemed lower risk, you should get a lower interest rate, and financing for a car is also easier to obtain than a personal loan.

 

[Bookwormlux1]

It depends on what you need the car for, if the purpose of buying the car improves your business or affect your daily dealings seriously then you can think of getting a loan to buy a car otherwise it is not advisable thing to do so especially when it will hugely affects your monthly salary.

I read about how some engineers and architects talked about how owning a car makes it easy to convince their clients to patronize and hire them to run contracts for them. Guess they like packaging, so this means such people can take loan to buy a car.