Donna asks…
Should i get a new car on finance or get my dad to loan me the cash?
Me and my hubby have seen a car we both want after months of searching its at £5,995 we could get it on finance at a rate of 6% or i have the option of going to my dad who is not rich but he could loan me the money of £4,000 over 3 yrs and ive got a grand for mine, so im hopiing the guy would knock a bit off if we pay cash.My dad is sceptical though, incase we lost our jobs ect ect normal dad worrys, My hubby is self employed but has worked since he was 16 and is now 32, so dont see why he should worry.
If i got my dad how do i persuade him?
Also if we go with finance is it better as we could swap the car in 2 yrs if we wanted to to? Or just give it back if worst case scenario happned?
Just wanted to add he could comfortably afford this, hes got 2 houses and selling one for 260.000……but hes not rich, my mums not keen on the idea either.eek what to do
alcatraz~ nice thinking but he will want the money as they are hoping to get a villa in cyprus plus i have 3 brothers so you cant buy a car for one and not the other ect ect
CSC101 Customer Service answers:
Sometime i think borrowing from family can cause alot of rows. If that is all your dad’s savings, then one day he might need it and will be relying on you to pay the money back quicker. If your dad is doubting you then he obviously doesn’t want to say “NO”, but doesn’t want to part with his money. I personally wouldn’t rely on other people and would get the loan, that way your not upsetting anyone, especially family!!
Paul asks…
Car Finance?
Problem -a car dealer offers you a choice of 0% financing for 60 months or $2500 cash back on a new car. You have a pre-approved 60 month loan you can use from your credit union at 4% interest rate. If the monthly payments ar 0% are $16.67 per $1000 financed, and the monthly payments at 4% are $18.41 per $1000 financed, what is the range of new car prices for which the cash back option will cost you less?
CSC101 Customer Service answers:
Taking the cash back and financing at 4% is the only option you should take. Apply the 2500$ to the price of the car, and lower the principal amount financed.
It really doesnt matter about the price of the car, until you get about $40K.
The 60 months financing is a ripoff. You will ALWAYS have negative equity in the car unless you made a HUGE down payment.. Go for your credit union’s deal. You have already thought this through, and your hunch that the credit union was the better of the 2 options was a correct one. Follow your gut…
James asks…
What exactly is a “cash allowance” mean when purchasing a NEW car?
Is it the same as “cash back“?
OR
Is it ONLY if you decide to FINANCE the car?
OR
Does it only refer to leases?
Does it work for ALL models of the car??—What if you add a bunch of options??
I think Cash back works like that….it just subtracts your total after options are put in.
CSC101 Customer Service answers:
Cash allowance is just another way of saying rebate. Car manufacturers have been offering rebates since 1975. They have tried every marketing ploy to make them sound as if its something new they’re offering you. But its the same old thing … A rebate.
Customer cash, cash allowance, down payment assistance, bonus cash … The all are nothing more than rebates.
Courtesy of Y!Answers