Asking for For your first car, should you apply for a loan or purchase in cash?

[astraherondale]

Some people tend to be cautious and would rather save up until they have enough cash to afford the car they want, but this takes time and would create an impactful dent on their savings fund. Taking out a car loan is faster and more convenient, plus you won't be able to feel the financial drain because you're paying it off gradually - but you'll end up paying more due to interest.

If you haven't quite established your career yet but would like to purchase your first car, should you apply for a loan or purchase one with your savings? How did you buy your first car?

 

[Kurosagi]

Something I have noticed in my time of looking into money is that the government is greedy. It is impossible to completely free yourself from this greed while inside of the confines of the government's jurisdiction. That said, there are ways to delay and reduce the impact of this greed. One way is to create a corporation to buy this vehicle with pre-tax money and still reduce taxes by calculating the depreciation of the car. This can be considered one way to "cut your losses" when buying anything from houses to cars. Of course, there is a limit to this and you have to be able to prove that this vehicle is a business asset. I'm no finance professional so you should seek professional help for these things. This is just me planting a seed of legal rebellion in your mind so that you aren't ravished by the high percentage of taxes. Think about it.

 

[bracknelson]

It depends on your financial condition, if you are financially strong you can easily afford a car, but if you are asking this question, it means you are income is low.
So, I would like to suggest you just take a loan and pay it gradually, don't take the risk of losing your savings.

Even if you have to pay high interest still you won’t be empty-handed.

 

[travissimons]

yes it's what it is. But you have to work to get that.