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

[Alexandoy]

Buying a car by loan is the most common means here of getting your own car. We bought 2 cars in 2013 both by a bank loan that we paid in 3 years. Yes, 2 brand new cars in the same year. It is because of the necessity that I needed a car for my job and my wife needed one as well. We both have our salaries to pay for the car. Now those 2 cars are still good - a Ford Escape and a small Mitsubishi Mirage. As long as you have the capability to pay the installments then I don't see anything wrong.

 

[WhiteHouse]

No it's not, you don't take loans buy a liability, you don't take loans to buy debt.
A car is a liability, because it doesn't bring money into your pocket rather it takes money out in terms of fueling and maintenance.

 

[Adeyoola7]

Buying a big car requires a large investment. ... whether he/she is comfortable with such a decision. ... Since he has a good income with no commitments,

 

[Ajibade]

Buying car with loan is bad and is good in another way because when you buy car with loan should have get an income that we cover your needs and the repayments of the car but you buy a car with loan it and your income cover only your loan repayments not up to your needs again is bad idea to get a car with loan

 

[Golden_ear]

Taking a loan to buy a car is not advisable, car itself is a liability. So I will advise to take a loan for business. Work on the business, dedicate your time and energy. And in time one will have more money to buy a car. One can even buy more cars and invest it for transportation business.

 

[Nosheen Rakhshandha]

Yes for some extend it's right to take a loan to buy a car may be after sometime one feel that he or she may buy new model .
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Yes for some extend it's right to take a loan to buy a car may be after sometime one feel that he or she may buy new model .

 

[GeneBiz]

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.

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?

Well, one thing is not having the economic capacity to buy a car, and another thing is not having the economic capacity to pay a loan ... if this is the case, it is advisable not to assume a debt of which we will not be able to hold long-term accountable ...

 

[Abigael]

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 you have a solid plan on how you will pay back the loan you took to buy a car then that is okay. Problem comes when you take a loan and don't know how you will pay it back. That will bring you so much financial problems. So you should only take a loan when you know exactly how you will pay it back.

 

[Smiles20]

It all depends on the situation at hand. If the car is to be used for road transport or other earning means. Then collecting a loan to buy the car is worth it.

 

[Bookwormlux1]

If you have a solid plan on how you will pay back the loan you took to buy a car then that is okay. Problem comes when you take a loan and don't know how you will pay it back. That will bring you so much financial problems. So you should only take a loan when you know exactly how you will pay it back.

Thanks for this advise. What if I am hoping on saving a percentage of my monthly earnings so I would be able to meet with the amount, should I go ahead?

 

[Olajidey]

A couple of years ago I sought to buy a car through some banks based on the adverts they put on the newspaper and I discovered that:
1. The adverts are largely misleading, in short, they are pure unadulterated lies. You will get an entirely different story the moment you step in there. One of the banks had advertised that you do not need to have an account with them, just provide all they are asking you to, but when I got there they said I am not eligible, I pointed out that the advert said having an account is not necessary, but the lady ignored me.
This is in addition to the fact that by the time you are shown the terms and conditions, you will disqualify yourself before they tell you you are not qualified.

2. I am not a financial person but by the time the amortization was explained to me I detected fraud in most cases.

My conclusion is the conditions of buying a car through the banks makes saving for the car look like a piece of cake, and if you finally do buy the car, talk to someone who understands the tricks the banks use to monitor your loan repayment or else you will repay what you rightly owe plus much more.
Here in Nigeria if you have a good income that can assist you to pay back the loan without stress and you are ready to put up with unprofessional Nigerian bankers then buy through the bank, otherwise buy with your cash and have fun.

As for asset or liability that is immaterial, what matters is do you need a car? Can you maintain the car?

 

[tuna89]

If you are sure that the business would provide a lot of profit, one can get a non interest loan, do make sure to have a business plan as well as this will enable you understand how to spend your resources/budget by living within your means.

 

[Janita]

I think this is the wastage of money because buying a car on loan is wastefull
We will buy car and then we will pay the whole money on the usage of petrol and diesel
Buying everything on loan is such a harmful plane for ourself
So we should avoid this kind of things that harm our mind and mental health
We all should consider the best and useful things in our daily life so we can stay happy by avoiding taking loan

 

[Sincerem]

It's a wise decision, only if you get the right source of income to pay as scheduled in the terms. Whether you wanna use the car for personal use, transportation means, etc. It solely matters to you, all the company cares, is the actual terms of repayment of the car price money.

 

[Afeefah]

Buying a car by getting a loan is not advisable. Cars need lot of maintenance to keep them in good working condition.

By getting a loan to buy a car, you will have to keep enough to get regular maintenance of the car and still be paying your debt.
Definitely not a wise idea.

 

[Tunnexisco]

Using loan to buy is an embargo area for me. But, if the car will be the only alternative I have left to facilitate my business to enhance rapid rate of delivery of goods and services to my customers, i wouldn't mind getting it through loan if their are no other means left. Let's take for instance, Nigeria as a case study; in a situation where little capital is available to establish a sachets or bottled water factory, then no additional money left while demand from customers is of high rate. If only the loan is available then and i found it accessible, i wouldn't mind taking a loan to ease and solve the situation at hand. However, i would use loan money to buy a car, provided it will be used to ease my business products transferability.

 

[Tayyabah]

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?

Well,if anybody's monthly income ishave upcan to 50,000 then he could think about it.otherwise monthly instalment would be difficult to pay on time.so we should take decision by pre plan strategically

 

[Sariana23]

I do not agree. I believe that to acquire a car you must have the capital, because when you compare it, you will be driving and wearing it out while you have the debt. Then come the mechanical repairs that will bring more expenses to your pocket. Then you will have to choose whether to pay the debt or repair the car. You must think it through before making that decision.

 

[Bookwormlux1]

Well,if anybody's monthly income ishave upcan to 50,000 then he could think about it.otherwise monthly instalment would be difficult to pay on time.so we should take decision by pre plan strategically

From your contribution, it shows that if my monthly payment is enough for me to be able to save a part without feeling anything, I can go ahead with taking the loan. That's nice.

 

[Nova]

I think taking a loan for buying car is worst decision. Because these days the car wont be in use as it is. And you have to push for the loan and pay the various loan related things over a period of time. I guess that wont be easy if you ask me. A lot of times car purchase can give you discount but they take more money out of loan downpayment.