whats the typer of payment for cars? credit or pay all at once?

Asked by Aug 03, 2012 at 04:47 AM

Question type: Shopping & Pricing

4 Answers

251,505

Both, whatever you prefer, or a combination. Of course it also depends on if you qualify for a loan.

1 of 1 people found this helpful.

I'm not sure I understand your question 100%, but if you mean if you should you buy a car and make payments or pay cash out-the-door? Pay for it if you have the money. About the lowest interest you are going to get is maybe 6% and that is even with a c-score of 800 or so, not counting the special promotions manufacturers sometimes offer. Say, arbitrarily the car cost $20k. You will pay close to $26...27k at BEST by the time 48 or 60 months goes by. Not to mention salesmen will even give you a better deal to begin with if you have cash. It's NOT like a house where your money is earning more than the mortgage interest. My opinion is PAY FOR IT! I got 6,25% and my credit is good, not 800 but real good. and try to use a credit Union and not a bank. Early in the loan, if say your payment is $350, the first few payments are $225 principal and $125 interest..in a single month.

1 of 1 people found this helpful.

I was writing at the same time as Tom...and Tom makes a good point. A combination, and remember what he said, if you qualify. The lower the score the higher the interest.

1 of 1 people found this helpful.

Off topic a little but Many years ago I bought a used car and the salesman told me they carry their own contracts, and I would pay 4.5%. But just before I signed, I saw a decimal point that had me at 45%. He said "oh, sorry, my mistake but I call BS. Watch out for that.

1 of 1 people found this helpful.

Your Answer

Get More Money for Your Car
Be seen by 20 million shoppers. Create Your Free Listing

Shortcuts

Shopping & Pricing Experts

  • #1
    Tom Demyan
    Reputation
    15,960
  • #2
    F_O_R
    Reputation
    6,740
  • #3
    COMETGUY61
    Reputation
    5,770
View All

Content submitted by Users is not endorsed by CarGurus, does not express the opinions of CarGurus, and should not be considered reviewed, screened, or approved by CarGurus. Please refer to CarGurus Terms of Use.