Payment or Purchase?

Do you prefer to set up a payment system for your new vehicle or do you prefer to pay something outright? Personally... I never really understood people who buy a used vehicle on payments. I would rather save up 2-4K and go by a used car outright on a car lot. I have only ever purchased two vehicles (both used) and I purchased the both outright. I have never seen people purchase a new or used car on payments and it end well. Given, these people were never very good with money. Do you have any preference?

 

i prefer paying in full but i am currently making payments on my truck. but not a full loan only a 16 month loan

 

Well for most people the problem is clear. They wish they could buy something outright, but the quality that they'd receive is just not worth it. Vehicles at the price the average person could afford to purchase outright are just not reliable. Reliability is a very important factory for everyday life.

Luckily, someone is paying for my current car...

 

Oh yeah. I completely understand! If there is a specific one you really want and you can only find it in that one price that is more than your budget... You do not really have a lot of choices. I am not really /that/ picky with a vehicle. I just want something that is a little on the smaller side (I do not like trying really large/long cars). It is a little harder for me to judge distance, haha. I think that is just because the first car I drove was so small. I learned how to drive in it and never really practiced driving in any other cars.

I suppose that my benefit is that I am getting married to a car mechanic, haha. Some people are not so fortunate as to be able to by a cheaper vehicle with problems and know that it can get fixed. If I did not have him... I would have a harder time picking out a used car to begin with. But, he does a great deal of expecting to figure out what problems it has before we purchase something. To be honest, I am probably a little spoiled in that sense. As long as we have money to fix the car problem. I am not a person that has to suffer with car problems for very long.

 

That is very fortunate. One of the best parts about that is that you never have to worry about getting ripped off by a mechanic. Even if it's something specialized that your hubby doesn't have the equipment to resolve. I doubt a mechanic would try to rip off another mechanic.. It's not worth the effort or hassle if they get caught doing it.

 

Yeah... A few shops have tried ripping him off a couple times. It never really ends well for him, haha. He has a pretty strong/stern personality when it comes to those kind of things. I usually just hide in the waiting room somewhere. And yeah... He really hates when there is something that breaks on the vehicle that he cannot fix... Because of lack of equipment/machines needed to do the job.

 

Yeah it must be a blow to his ego in some sense. That's how he provides for you, yet he can't do what he does everyday for you. Haha

 

I prefer to make payments because I buy new or like new vehicles and there is no way I can save up that kind of cash. So far it has worked out well and I have only had one repo and that was due to the economy turn down and not being able to find a job.

Greg

 

I prefer payments. It's easier for me than paying a certain amount outright.

 

I prefer payments, like most people have already said, I don't have the kind of $$ to buy a new car out right. I had bought my first car cash, but it was a 12 year old car with a million miles on it! LOL!
I have done both the lease option and the purchase finance option, and I have to say, I prefer the purchase finance. I seem to get a way better rate, I own the car (more so than if I had leased it, cause in reality, the bank owns it) and I also find I don't want to be bothered and worried about putting kms on a car! Purchase financing, where it is a bank I am making payments to, also affects my credit score in a positive way, where leasing did not affect it one way or the other...When I leased my last car, I ended up buying it out anyway because it was cheaper than paying the overage on the kms...

 

I also prefer payments because its hard to save up enough cash for a reasonable car that I can use for five to ten years. Im almost done with paying my payments for my car that I drive now so Im excited. I cant wait until I dont have a car payment.

 

The cost of automobiles have gotten so far out of control that it's nearly impossible to buy a decent one without payments. Sure, you can purchase a used car for $2000-$5000, but you're going to have to put a lot of work into whatever you buy at that price and, unless you're lucky, you'll be back at the lot buying another car is just a few short years.

 

I would only pay cash if I were able, as credit has made my life miserable at times. I can't always pay cash because most of the time my tastes and my finances don't always align. A goal of my is actually to remove the need for credit completely from my life, via automated online income. Still have a way to go, but right now the focus is to get rid of my house payment and my student loans. Those are my two biggest credit related expenses.

 

I will never forget when my mom went to a car dealership and pulled out her purse. It was filled with money. She bought my father a band new car for his retirement gift and paid it full in cash with extra grocery money that she saved up over the years. I was wowed by that lol. I do think it is best to save up and just buy the car outright. I wouldn't like to be paying interest on a car loan.

 

Wow - that's amazing. I feel like when I go to get groceries I have to open up a car loan to pay for them.

I'm also in the position that I can't afford to buy a car outright. The best option for me is to get a loan or lease the vehicle.

 

I would rather just buy one but in this day and age it is hard to do and financing seems to be the more viable option.

 

Yes, I am the same as you are when it comes to saving. My mom on the other hand is very different. If you give her a dollar it somehow becomes five lol. She grew up very poor and said she sometimes did not have shoes to wear or food to eat. She grew up in Greece and was born just after WWII, so I can imagine her childhood was rough. My dad grew up the same way. I think this hardship made them tougher and very careful with their money. I think that is why they can save so well and became so successful. I wish I could buy a new car outright in cash like my mom did for my dad. I can only imagine how many years she was saving for it.

 

As I'm only 20 I want to avoid borrowed money in case i get a bad credit history if something happens and I couldn't make a repayment so I've been saving for a few months to buy a car outright in cash. It'll feel better knowing the car is ALL mine and can't be taken away if something goes wrong with the bank even though waiting is killing me slowly