Smart way to finance a car

AndyT678

TrustyOven wrote: »

On the face of it, I agree with you.

But after thinking about it, why would such a person be buying bonds of the same price as the car?

Why not 5 * the price of the car? Or however much is needed so that the bond payments meet the loan interest payments.

Yes that would work but that's not what the article suggests. It doesn't say "he takes 5 x the money" it says "he takes the money".

TrustyOven

AndyT678 wrote: »

Yes that would work but that's not what the article suggests. It doesn't say "he takes 5 x the money" it says "he takes the money".

Indeed, you are correct.

smjxm09

If the car is something like a Mercedes the manufactures discount can be secured with a £3000 HP loan paid over two years with interest of around £165 paid.

This would allow you to borrow any remaining sum from where ever you like.