Car Loan vs. Paying Cash

Are you better off taking out a loan for a new car or paying cash?

Bob from Wheeling, IL

Answers:

Car Loan vs. Paying Cash

If you have the money to pay cash for the car, do it.
If you take out a loan, the interest will add to the total cost of the car. Unless you get 0% interest, pay cash. I have done both, and cash is better. (09/08/2006)

By Jean

Car Loan vs. Paying Cash

This very question as asked by me to my financial planner who responded that it is always better to obtain a loan and invest your money for a greater return on your dollars. Inasmuch as the vehicle is a depreciating asset and the interest paid, with normal car loans, is not deductible. Good luck. (09/09/2006)

By JohnP