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

[Axis]

im only early 20's, I dont have a place of my own at the moment.

If say I want to take a loan for 15 - 20k. what would be the best option to go for?

Probably a Car Loan from the bank. IE - a Bill of Sale where the car itself is used as security on the loan (the bank owns an interest in the car)...

[mikinoz]

Have you considered speaking with your accountant/lending broker?

[Achtung Tiggy]

im only early 20's, I dont have a place of my own at the moment.

If say I want to take a loan for 15 - 20k. what would be the best option to go for?

I'd say go for a car loan. But do your research on the banks and finance companies and find out who has the best rate.

[Christopher]

I have the cash to pay for the car in full.. should i keep that cash or take a loan? Im thinking there could be some tax benefits??

I think the only way you could get a tax break would be if you own your own business and say that it's a company car?

but yeh, as mentioned above, your accountant will be able to tell you definatively.

[STV4SYT]

I think the only way you could get a tax break would be if you own your own business and say that it's a company car?

but yeh, as mentioned above, your accountant will be able to tell you definatively.

Even if you have a business and pay for the car in full you can still access benefits for using the car for business purposes.

The only difference is you can claim the interest (or part of) as a tax deduction.

YOU STILL HAVE TO PAY INTEREST ON A DEPRECIATING OBJECT

Which goes against my Rule #1

[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.