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

[Bookwormlux1]

It is not advisable for someone to take a loan and purchase a car when you don't have the money to buy it at the moment because car is mostly a liability that will drain off your resources when it comes to maintaining the car.

Absolutely, a book i was reading explained that the moment you drive out of the place where you bought your car, its value has already depreciated by 25percent. It's really a liability.

 

[Niftyyem]

Absolutely, a book i was reading explained that the moment you drive out of the place where you bought your car, its value has already depreciated by 25percent. It's really a liability.

That depreciation is one of the many reasons, I think it is unwise to buy a car by incurring debts because even selling off such a car a few hours after it was bought would likely not give back the same amount you bought it.

 

[Bookwormlux1]

That depreciation is one of the many reasons, I think it is unwise to buy a car by incurring debts because even selling off such a car a few hours after it was bought would likely not give back the same amount you bought it.

Sure, even if it is same people who just sold the car to you, they will never agree to buy it again at same price that they sold to you.

 

[eLdavis]

it would be a good decision if the car Is a business car. Cars generally are liabilities but if the car is generating income then it is a liability turned asset. If you buy the car for normal movement it is not rational

This is exactly what i was just thinking about. Cars are not assets but liabilities, so it would be an error to use a loan to buy a car, you would need to pay back the loan and also maintain the car. So how do you go about both. But if the car is for business purposes, then it could be seen as an asset, as it helps in bringing in income.

 

[Kelly5]

I have not always been a fan of those who thinks it is always advisable to be going to the financial houses like the banks to collect loans. The car business is a good one, but I will not advise collecting any loan from the bank to buy that car

 

[FreshKaz11]

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?

Is a good one if we are living in a more secure country, because anything could happen in the process when you purchase the car, so my advice is to purchase a car with s of money not using loan I guess.

 

[Razor1911]

I personally have taken loan for buying car. I had taken this on 2017. But I seldom use my car so I think it was not a good investment for me. I still have to pay EMI for 2 years more.

 

[Bookwormlux1]

I personally have taken loan for buying car. I had taken this on 2017. But I seldom use my car so I think it was not a good investment for me. I still have to pay EMI for 2 years more.

Wow that was sure not a good experience you had I guess. Imagine paying for a car two years after when the car's value has depreciated drastically, not nice at all.

 

[Kunkun]

A car that doesn't fetch income is a liability so why would you take out a loan to buy a liability unless it would be used for transportation purpose so as to fetch profits

 

[Bookwormlux1]

A car that doesn't fetch income is a liability so why would you take out a loan to buy a liability unless it would be used for transportation purpose so as to fetch profits

Even at that, it still doesn't make sense completely because you can spend up to 3 years still paying for that car when you should think of something better.

 

[Kunkun]

Even at that, it still doesn't make sense completely because you can spend up to 3 years still paying for that car when you should think of something better.

Exactly it makes no sense to take out a loan just to get a car and it's even more ridiculous if the car isn't intended to fetch income, unfortunately lots of people with the urge to belong have made such moves

 

[Bookwormlux1]

Exactly it makes no sense to take out a loan just to get a car and it's even more ridiculous if the car isn't intended to fetch income, unfortunately lots of people with the urge to belong have made such moves

Probably a result of lack of self discipline. They do not understand that rich people only buy these things out of profits they made, not their income.

 

[Razor1911]

Wow that was sure not a good experience you had I guess. Imagine paying for a car two years after when the car's value has depreciated drastically, not nice at all.

Everything is not measured in profits. We build houses , expensive houses, but that is not for investment purposes, It gives security. Car that I have bought not for business purposes but for convenience. Since I work in out of my hometowm, the car I have bought is used whenever I go home or hire a driver. And on duty hours, company already provided me a car for convenience.,😁

 

[Kunkun]

Probably a result of lack of self discipline. They do not understand that rich people only buy these things out of profits they made, not their income.

Well said indeed, rich people usually get what they want because they seem to have vast portfolio of incomes unlike the not so rich so before spending on anything make sure it's within your means

 

[Alexandoy]

Everything is not measured in profits. We build houses , expensive houses, but that is not for investment purposes, It gives security. Car that I have bought not for business purposes but for convenience. Since I work in out of my hometowm, the car I have bought is used whenever I go home or hire a driver. And on duty hours, company already provided me a car for convenience.,😁

The car that we bought, actually we have 2, are for our convenience. My wife has her own car to use for going to work 5 days in a week. My SUV is our use when we travel farther especially for a vacation to far flung areas. We consider the car as an asset that is losing value in time. But it is the convenience that matters for us.

 

[GIFTMICHAEL]

That's completely unwise decision to take loan just for buying of personal car?? If its a better ride, and mainly for commercial purposes it will somehow be reasonable to borrow and order it.

 

[Razor1911]

Exactly. Not everything we buy is for profits. The value of the item is more important. The car you have bought is not for investment, but for convenience.

The car that we bought, actually we have 2, are for our convenience. My wife has her own car to use for going to work 5 days in a week. My SUV is our use when we travel farther especially for a vacation to far flung areas. We consider the car as an asset that is losing value in time. But it is the convenience that matters for us.

 

[Ralphjoe]

Exactly. Not everything we buy is for profits. The value of the item is more important. The car you have bought is not for investment, but for convenience.

There is nothing that will justify any reason for one to take a loan to buy a car because in any financial rule that is actually about a bad decision for one to make if one need to be financially disciplined.

 

[Razor1911]

There is nothing that will justify any reason for one to take a loan to buy a car because in any financial rule that is actually about a bad decision for one to make if one need to be financially disciplined.

You mean everyone who buys anything non productive by taking loan is not worth it. People buy apartment with huge amount, even knowing the price will depreciate, is it for investment or security?

 

[Bookwormlux1]

Well said indeed, rich people usually get what they want because they seem to have vast portfolio of incomes unlike the not so rich so before spending on anything make sure it's within your means

They do not understand this, and so they want to feel among those who have paid their dues by working hard to get enough riches and are spending on luxuries.