Did you get Finance or a Car Loan for your MK6 Golf? and with who? Need advice!

[iBoost]

I agree with Steve_tdi, I'm not comfortable paying for a loan on a depreciating asset. I'm paying cash for my GTI and have for each car except for when I felt the need to buy a 200sx at the age of 19 (small car loan).

Everyone's circumstances are different though, and if you are considering finance or a car loan, in most cases the car loan will be a lower rate I believe.

[Tim]

I think if you do the sums you will find that paying interest on a car loan is not so bad compared to paying in cash.

If you do the calculations over 5 years then you will quite often come out in front if you had have banked the cash and paid the finance because your savings interest compounds.

[Mk6 GTI]

I agree with Steve_tdi, I'm not comfortable paying for a loan on a depreciating asset. I'm paying cash for my GTI and have for each car except for when I felt the need to buy a 200sx at the age of 19 (small car loan).

Everyone's circumstances are different though, and if you are considering finance or a car loan, in most cases the car loan will be a lower rate I believe.

I might just pay it in cash too, Less effort involved!

I agree.. the last think i want is to pay interest on a car loan!

[dodgeGTI]

This guy is a finance broker...

www.spdfinancialservices.com.au

[xblode]

Just my two cents.

Yes, financing a large purchase means having to pay interest and other associated costs but paying in cold hard cash has it's issues too.

You save all this money, so you gotta make it work for you. Paying for a car in cash sounds great but getting finance frees you up to do other things with your money.

If I've got a a personal loan that costs me, say $250 a month and at the same time I've got 10K in my savings account, I won't be rushing to pay off the loan, just 'cause I can.

I've had situations where I had money saved up that allowed me to invest or achieve a specific goal that presented itself. Had my savings been used to purchase a car, I'd miss those opportunities.

We pay for the privilege of finance but it opens doors and gives you options. I'll stick to having flexibility with my money.

[niulf]

Just my two cents.

Yes, financing a large purchase means having to pay interest and other associated costs but paying in cold hard cash has it's issues too.

You save all this money, so you gotta make it work for you. Paying for a car in cash sounds great but getting finance frees you up to do other things with your money.

If I've got a a personal loan that costs me, say $250 a month and at the same time I've got 10K in my savings account, I won't be rushing to pay off the loan, just 'cause I can.

I've had situations where I had money saved up that allowed me to invest or achieve a specific goal that presented itself. Had my savings been used to purchase a car, I'd miss those opportunities.

We pay for the privilege of finance but it opens doors and gives you options. I'll stick to having flexibility with my money.

It really depends how much money do you have. I'll do same thing as you do, because I'm not rich. But one of my friend just paid off everything, house, cars. He's rich.

[scheps]

typically what are we looking at, loan vs cash up front difference at the end of the loan?

[MY10TSi]

Have a look at a RACV, you should be able to get 9.5%.

In regards to financing or buying the car outright.

It depends on your cashflow, I prefer to finance and invest the money i have sitting around as you will be better off.

Do a comparison with:

a) how much the car will cost with interest
b) how much you will have if you place it in the bank for 5 years
c) how much will you have if you invested in a particular investment