Loan or cash for car?

jull_2

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BugsyBrowne

jull wrote: »

I am buying a new car, 11 reg and have the cash in my bank account.

Is there any advantage/disadvantage to buying the car for cash over buying on credit, disregarding any interest payable on the loan.

A couple of friends think I am mad paying cash as they think if anything goes wrong with the car I would be in a better position to get it sorted if I was paying it up.

Well if you have the cash their you could defiantly come to some sort of arrangement with the dealers including extended warranty,money off,its a no brainer if you ask me pay in cash.
Also why would you be in a better position if you got the car on credit? You wouldn't!!

stqueen

jull wrote: »

I am buying a new car, 11 reg and have the cash in my bank account.

Is there any advantage/disadvantage to buying the car for cash over buying on credit, disregarding any interest payable on the loan.

A couple of friends think I am mad paying cash as they think if anything goes wrong with the car I would be in a better position to get it sorted if I was paying it up.

Unless the credit that you secure is at 0% for the duration, you would almost certainly be worse off by taking out credit!

allisonw

I think they are just jealous that you can buy a new car for cash.

JasX

jull wrote: »

A couple of friends think I am mad paying cash as they think if anything goes wrong with the car I would be in a better position to get it sorted if I was paying it up.

No the finance will be with a 3rd party finance company, you have no stronger rights having got it on credit as the dealer gets paid in full immediately either way.

All stopping paying the finance company results in is a trashed credit rating and the finance company taking you to court.

(Section 75 aside, but that's only come into play if you thought whoever you were buying the car from was likely to go bust before you had the chance to recieve the car or sue if there is something wrong with it, it just gives you a 2nd company to take legal action against, no that either of them would do anything to help you sort out your problem)

Definitely don;t lend money to friends giving you advice like that, personal finance issues seem somewhat beyond them.