Is Getting A Car Loan A Good Idea?

Is Getting A Car Loan A Good Idea?

Is it a good idea to take out a loan to buy a car?

You could certainly argue that a loan that gets you a car could belong in this category, too, since you presumably need a car to get to work and build your career.

Other signs of good debt include low interest rates and reasonable terms.

Is getting a car loan a bad idea?

Why Financing a Car is a Good Idea. There is really only one reason you would finance a vehicle instead of buying the vehicle outright. If you are disciplined and actually have the cash saved and have it invested in an interest-bearing account at a much higher rate than the financed amount.

How much should I put as a downpayment on a car?

20 percent

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