Cash or Financing for Brand New Car

[AppleMischa]

Hello everyone. Newly registered member here and hoping that you kind people can help me in regards to my concern in purchasing a car.

This is the scenario, me and my brother plans to buy a brand new car, which do you think would be the best way for us to do this, pay cash or through bank financing? Which of the two can provide us a better savings? We already have the cash available but base on what we were told, sales agent are less enthusiastic assisting cash payers especially giving out discounts and freebies, is this true?

Thank you in advance

[tidus1203]

CASH! No question about it. You save a lot of interest money... F**K the sales agents, and F**K the freebies those will pale in comparison with the amount of interest you will be paying on a car loan...

[dr. d]

unless you have a fabulous investment deal that gives foolproof high interest, paying cash is always the cheaper way to go.
if your sales agent seems lukewarm to the idea, go to another!
start with, " i am paying in cash. what deal can you offer me?", and get several offers before deciding which one...

[digitalron]

Cash is King in this instance. the only reason you don't buy a car in cash (even if you have it) is if you want to maintain some liquidity for other purposes.

Take note that with a car amortization interest of 10% annually (a bit higher in the real world), a million peso car will end up costing you at least 1.5 million after five years.

[AppleMischa]

Thank you so much for those information. Since it would be our first time to buy a car, we thought that we would be paying the same amount as per cash except that through financing we only do a portion of the remaining balance monthly. We never knew that there will be such a huge difference on the amount due to the interest rate.
This being said, we will go ahead with cash and would just have to settle with whatever the discount and freebies that goes with it.

Thank you once again.

Regards,
Apple

[myk384]

Xash is the way to go. Less hassle, less expenses.

[andretti]

Cash is always the best option in my opinion.
Sa deal package naman depende rin yan sa unit na binibili mo, some dealers even give discounts to cash buyers at comparable din naman yung mga freebies na binibigay nila.