Subject above refers.

Which is more financially intelligent of the two? which would you rather do and under what circumstances?

It all depends on your personal circumstances and affordability.
If you can afford it, and still have lots of money left, buy it outright. However it is a lot of money that can also be used for other means.
No sense buying a car and using all your savings. In that case loan it and pay it in manageable instalments.
You just have to worry about interest rates, and steady income/payments.

it depends on what is good for you at the time

It is expensive to buy on loan but one can go ahead if he does not mind considering the attendant risk.

It is better using a loan.
Outright payment is best when u are finacially capable enough.

[size=15pt]FUNNY QUESTION.......

OP NO GO KILL ME..........

WHICH NIGERIAN BANK DO YOU THINK WOULD LOAN YOU MONEY TO BUY CAR.....

OGA YOU DEY NIGERIA.......OOOOOOO

HAHAHAAHHA.....[/size] [size=40pt]YIMU [/size]

bank loan is preferable u can pay back the loan

Buying with a credit card facility is better and more convenient

My advice...avoid any kind of debt by all means. If you cant afford it, you dont deserve it yet. Earn enough to deserve the lifestyle you desire.

I don't knw whatever u guyz think...dz made fp.....

My contribution: Loan are risky to take depending on where you are getting it from, Our Banks can frustrate your life when you take loan from them cos of their hidden conditions.

My Advice: Safe your humbly earnings and be patient, your dream car will be a reality.

My Thot: If you take a loan to buy car and eventually u bash wit it den u will know the difference between Owned and Loaned

Marshalltj: I don't knw whatever u guyz think...dz made fp.....

My contribution: Loan are risky to take depending on where you are getting it from, Our Banks can frustrate your life when you take loan from them cos of their hidden conditions.

My Advice: Safe your humbly earnings and be patient, your dream car will be a reality.

My Thot: If you take a loan to buy car and eventually u bash wit it den u will know the difference between Owned and Loaned

you can't say it any better. I am a banker and the last thing i would do is to buy a car with a loan.

Your question pre-supposes that you already have the cash on hand and are in a dilemma whether to use it or get a loan.

The best option is to treat it as investment and see if you will be a least even at the end of the day...

First see what the loan will cost you in interest rate or APR....Also see how much it will cost you to get a personal on secured loan from the bank...if the situation currently in Nigeria is same as it is in developed countries, the interest on the car loan will be lower than the personal loan because the car acts as a security.....look at it this way..

Given the above, I will invest the money and take the loan....at the minimum your investment cash flow has a boost which is equal to the difference between the above two interest rates.

A good and effortless investment for that cash is to buy a land, put a fence around it and either sit on it or gradually start developing it.

While the land is an asset and will continue to appreciate in value, your car is a liability will continue to depreciate. If you hit a financial bump in the road tomorrow, you can turn around and sell the land, payoff the loan...and you will still have some change in your pocket plus you will have your car to either sell to make more money or keep...but had you bought the car outright, you will get less than 50% of the original value.

its best stealing it

A loan to acquire a liability? Orisirisi! Some people are just doomed to remain poor!

Marshalltj: I don't knw whatever u guyz think...dz made fp.....

My contribution: Loan are risky to take depending on where you are getting it from, Our Banks can frustrate your life when you take loan from them cos of their hidden conditions.

My Advice: Safe your humbly earnings and be patient, your dream car will be a reality.

My Thot: If you take a loan to buy car and eventually u bash wit it den u will know the difference between Owned and Loaned

bashing it is what insurance is for...it is foolheaded, not to protect your car with an insurance.

I will gladly take the loan and invest the cash..I will also make sure to carefully read the terms and conditions to make sure there is nothing sinister hidden in the fine prints.

Personally i feel a loan is better especially from cooperatuves with lower interest rates than banks. Yu wont get to feel the brunt of such a large expense as yu pay it over time. In addition, the car can be sold, a liitle more added to the cash at hand and then get a better car

hmm very risky oh trea
d carefully

My advice for you is to buy a small car that your savings is adequate for, one thing I have learn't is that maintaining a car you have not fully paid for can be so stressful and disgracing especially when it is your first car. Pls take this one...To maintain a car, you need to be little bit comfortable...don't borrow to buy a depreciating asset.

Don't buy @all
The earth can no longer take the weight of cars on it!!

See traffic,gridlock,no parking space everywhere

Loan ke?

Well maybe the OP is a foreigner.

Marshalltj: ...My Thot: If you take a loan to buy car and eventually u bash wit it den u will know the difference between Owned and Loaned

what else should I say? @OP now exercise your power of choice

ayo ade: My advice...avoid any kind of debt by all means. If you cant afford it, you dont deserve it yet. Earn enough to deserve the lifestyle you desire.

Bros, it depends.
Would you rather dump your 3 Million on a car today just because you have the cash sitting in your account rather than committing 2.5M on a landed property and augmenting the remaining 500K with a 2.5M bank loan which you can pay over time?

chukyjones:

you can't say it any better. I am a banker and the last thing i would do is to buy a car with a loan.

If u are a banker,you can afford to buy it cash na bt as a bank staff,u collect a loan.Abi na lie?

kodewrita: Subject above refers.

Which is more financially intelligent of the two? which would you rather do and under what circumstances?

It depends on what you're doing with the balance you're not paying.

Dominionng: A loan to acquire a liability? Orisirisi! Some people are just doomed to remain poor!

You just aired my view

I recently met a young graduate who bent on buying a car as if it's an investment .
He has not gotten a permanent job but just because he saved some money during his youth service.

Misplaced priorities

It all depends on the interest rate of the loan. If the interest rate is 3% as you will find in the US, then it is better to buy using a loan but if you are in Nigeria where the interest rate is 18%, it is better to save and use cash. No sense in paying 18% interest for a car that depreciates.

The value of the car depreciates very fast. I would rather invest my money on other stable investment and get the car on loan.

E.g. if you pay the car in cash and pay insurance, and then have a write-off accident, the insurance company will only pay for the value of the car ( mostly determined by the mileage and the year model and accident history of the car ) at the time of the accident ( but also depending on the option you took ). In essence you will loose even though you do not owe no kobo.

If you take the car using the loan, ( without insurance ) if you have a write-off accident you will loose big time becuase you will loose the car and still have to pay the loan

If you take the car using the loan ( with insurance ) and you have a write-off accident, the insurance will pay for the value of the car at the time of the accident ( you may be required to pay excess ) depending on the option you took, you may loose you may gain a bit.

Very dicey. But personally I would invest my money in something stable and pay a car loan.

Car value depreciates faster

how do i send a topic/write up to be considered for posting ?

linearity: Your question pre-supposes that you already have the cash on hand and are in a dilemma whether to use it or get a loan.

The best option is to treat it as investment and see if you will be a least even at the end of the day...

First see what the loan will cost you in interest rate or APR....Also see how much it will cost you to get a personal on secured loan from the bank...if the situation currently in Nigeria is same as it is in developed countries, the interest on the car loan will be lower than the personal loan because the car acts as a security.....look at it this way..

Given the above, I will invest the money and take the loan....at the minimum your investment cash flow has a boost which is equal to the difference between the above two interest rates.

A good and effortless investment for that cash is to buy a land, put a fence around it and either sit on it or gradually start developing it.

While the land is an asset and will continue to appreciate in value, your car is a liability will continue to depreciate. If you hit a financial bump in the road tomorrow, you can turn around and sell the land, payoff the loan...and you will still have some change in your pocket plus you will have your car to either sell to make more money or keep...but had you bought the car outright, you will get less than 50% of the original value.

Bros, I no know say you don write something this sound, I for no need type my own. You said it all.

Reading through some comments here, I must admit.. I feel like weeping for the future of this country. You guys were taught how to work for the government and the big multinationals but not how to be financially intelligent.

Now, forget what u were taught in school! In the real world, the simple meaning of asset is anything that brings in money while liability is anything that takes money from u. The car you bought for luxury is a liability.

Contrary to some comments as well, taking a loan is not a bad thing. It only depends on what u do with the cash. When u take a loan to aquire a liability, it's called Borrowing whl a loan used to aquire an asset is called leverage. You see, the rich don't borrow. They leverage!

Some dude even said something abt saving to aquire a liability, Haba! Get a job! Create multiple sources of income! Learn to cut ur coat according to ur coat. Driving a car early doesn't make you fulfilled. Life is a race, there is room for overtaking. Life isn't fair. Bleach yours with being financially intelligent.

I wouldn't dare buy a car with a loan, it doesn't make any economic sense to me. I will be forced to service both the loan and the car (a depreciating asset). I'd rather wait till my savings have grown to extent of affording a car with enough change to play around.

Just my opinion

ayo ade: My advice...avoid any kind of debt by all means. If you cant afford it, you dont deserve it yet. Earn enough to deserve the lifestyle you desire.

There is this thing called cashflow.Ideally its better to buy something,take possession and pay over time.You need to pay other bills.Sadly,in our country,the banks only offer a basic product.:the savings account.They dnt have financial creativity.So our financia services industry is dead.