Date: Fri, 16 Sep 2005 05:29:35 GMT From: "James Sweet" <jamessweetnospamail.com> Subject: Re: Financing vs. buying for cash
"Intrepid Observer" <no-nonospamet> wrote in message news:cNjWe.677$jS.3nospamsvr30.news.prodigy.com... > If you have the $20,000 (US) or so to spend on a new car is it wiser to buy > the car for cash or take out a loan? > One salesman advised me it is better to get a loan so you pay less for the > car upfront in case it is in an accident as the insurance will only pay up > to the current value of the car as used/depreciated. Was he just saying that > to sell me a loan or does it make real world sense? > > It's a toss up really, you're screwed either way. Financially the obvious best choice is to buy a car that's at least a year or two old and let some other sucker take the big depreciation hit, of course if it just has to be a new car you can probably afford it either way so go with whichever is more convenient.