As people’s living standards improve and car prices gradually approach, there are more and more cars on the road. The convenience of having a car is undeniable. “How to buy a car is more cost-effective”. Many richer pals choose to buy a full car, one is simple and less complicated; the other is they think there is no extra cost to buy a car in full. You can avoid paying more interest on the car when you pay it back. Also, there are no other bundled fees for buying a car in full. Which is more cost effective, buying a car in full or getting a loan?
Let’s take a $150,000 car as an example and calculate the cost of a full payment, discounted interest rate and zero-interest loan.
No matter how you buy the car, the cost of purchase tax, insurance, and card fees are the same. If you don’t make a difference, is there any difference between a full repayment and a loan?
- Car price installment. The total cost of buying a whole car is $159,000; the total cost of using a discounted loan is $167,000, which is $8,128 more than the full amount; the total cost of using a zero-interest loan is $162,000. because there is no interest, so it is more expensive than the full amount. $3,000 processing fee.
- What is the down payment. The full purchase of a car needs to be taken out at almost $160,000. Even the richer partners will have their cash flow on hand affected. A loan only requires a payment of $60,000 to buy a car, with a monthly payment of less than $3,000 .
- Bargaining on car prices and other fees. In many stores, the price range for a full price and a loan to buy a car can be different. It depends on how much people run home store and look. In terms of insurance, if you intend to take all the risks, there is basically no difference between full and loan. If you only intend to buy strong insurance, then you may be required to pay a specified premium for the duration of the loan. You can choose the right insurance for your needs and situation.
