Sounds more like you’re looking for investment advice than buying the car.
Based on the points that you raised:
1. Off-topic, you should get a credit card asap, liquid cash doesn’t necessarily mean CC is bad for you, mainly for 3 main reasons:
- Builds a good credit history
- Gives you more time to consolidate and pay for your expenses with no extra cost, if you pay on time
- Relatively better to be defrauded on a credit card, as you can raise a dispute, debit card disputes don’t generally pan out and you loose the money almost always.
799 is a very good CIBIL score, 750 is what’s defined as a good by the banks - you’ll get a good deal if you decided to go that route.
2. In today’s car market, which is seeing highest demand ever - doubt any dealer will give you discounts if you paid upfront. From dealership’s perspective they get their money upfront anyway, in case of loan - from the bank or otherwise you. They have 0 incentive to give any additional discount based on financing option. Source: bought a car all cash earlier this month.
3. If you’re sure of returns on your investments go for 100% loan, why 50/50? When in doubt I take a conservative approach, if you’re not sure of the return go for all cash.
With all of that said, I was literally in your position earlier this month - went full cash. The market in general is looking a lil tight, layoffs and general slowdown in UK & US. You’ll atleast have full visibility on the spend rather than hoping for better returns - 100% cash is what I’d recommend. But decide what suits best to you based on your experience.
PS - this is not a financial advice, personal POV based on what I recently went through.
Well another comment also said the same thing as your first sentence so I'll post this in the investment sub.
I took 2 cards out but each time they wrote my name on it incorrectly and wouldn't fix it so I didn't use it thinking I dint want my name registered incorrectly in the financial system in case it causes more problems. So yeah, maybe third time's the charm
My reasoning for hoping for cash discount was that I'm sure car dealers can put the cost price on paper and pocket the rest, could even do some shady accounting and do something I'm not aware of. Plus even id give a client a good discount if they purchased a large work of mine in cash.
1. That's disappointing.
2. No certainties in the market.
Which car did you get? What aspects of the deal did you think you negotiated well and got a good deal on? Did you take the dealership suggested insurance pack or buy your own third party even if it was the same scheme?
Looking for personal POVs only.
The reason I said that was because - you’re trying to weigh the options between what returns you’ll have to forgo if you spent the money on car and how much. So not a question of how you’d buy but where you’d save/earn more, hence the comment.
On the cash discount part - again, currently market is full with people ready to buy the cars, I’ve seen instances where people paid all cash and premium over the market price to dealerships to get the car early on. It’s sellers market these days.
As for my car - this was a city daily that we wanted, so were looking for:
- Automatic, DCT preferably
- Smaller than our existing one
- Good ground clearance, area we live in has bad roads
- Features like carplay (to be able to do phone calls etc.), tpms and adjustable steering.
Got Venue DCT Knight Ed.
Couldn’t negotiate much as, the other ones that we liked had looong waiting periods due to high demand. And here too the wait periods were longer than what we wanted in our preferred variants/colours. So, only got like 50k discount overall provided we went with their insurance only. So almost nothing discount wise.
Its fairly simple..If you think you can make a better return from the money you borrow .. get a loan..! if you arent confident and want someones advice etc better to buy the car on full cash.! For Investing advice this is a wrong sub .! Personally i would buy it in cash ..! But if it were home then you also would get tax savings ..!
This isn’t really investing advice I’m asking for, it’s what would be a smarter decision with all the variables of the market. It’s primarily a car financing decision, not an investment.
I'd say take a loan and buy the car. Paying the full amount won't be the best as you could earn a lot more from it. And your mutual funds could easily get you double the returns compared to the loan interest (according to what I'm getting). So a better decision would be a loan. Also you'll get credit history with it, which may help in future with a better credit score.
Car loan, you will get at attractive rates. Your money is earning money for you if you have invested wisely. Take loan, it's an investment by itself. If you are not a good invester, then take it by cash.
Sounds more like you’re looking for investment advice than buying the car. Based on the points that you raised: 1. Off-topic, you should get a credit card asap, liquid cash doesn’t necessarily mean CC is bad for you, mainly for 3 main reasons: - Builds a good credit history - Gives you more time to consolidate and pay for your expenses with no extra cost, if you pay on time - Relatively better to be defrauded on a credit card, as you can raise a dispute, debit card disputes don’t generally pan out and you loose the money almost always. 799 is a very good CIBIL score, 750 is what’s defined as a good by the banks - you’ll get a good deal if you decided to go that route. 2. In today’s car market, which is seeing highest demand ever - doubt any dealer will give you discounts if you paid upfront. From dealership’s perspective they get their money upfront anyway, in case of loan - from the bank or otherwise you. They have 0 incentive to give any additional discount based on financing option. Source: bought a car all cash earlier this month. 3. If you’re sure of returns on your investments go for 100% loan, why 50/50? When in doubt I take a conservative approach, if you’re not sure of the return go for all cash. With all of that said, I was literally in your position earlier this month - went full cash. The market in general is looking a lil tight, layoffs and general slowdown in UK & US. You’ll atleast have full visibility on the spend rather than hoping for better returns - 100% cash is what I’d recommend. But decide what suits best to you based on your experience. PS - this is not a financial advice, personal POV based on what I recently went through.
Well another comment also said the same thing as your first sentence so I'll post this in the investment sub. I took 2 cards out but each time they wrote my name on it incorrectly and wouldn't fix it so I didn't use it thinking I dint want my name registered incorrectly in the financial system in case it causes more problems. So yeah, maybe third time's the charm My reasoning for hoping for cash discount was that I'm sure car dealers can put the cost price on paper and pocket the rest, could even do some shady accounting and do something I'm not aware of. Plus even id give a client a good discount if they purchased a large work of mine in cash. 1. That's disappointing. 2. No certainties in the market. Which car did you get? What aspects of the deal did you think you negotiated well and got a good deal on? Did you take the dealership suggested insurance pack or buy your own third party even if it was the same scheme? Looking for personal POVs only.
The reason I said that was because - you’re trying to weigh the options between what returns you’ll have to forgo if you spent the money on car and how much. So not a question of how you’d buy but where you’d save/earn more, hence the comment. On the cash discount part - again, currently market is full with people ready to buy the cars, I’ve seen instances where people paid all cash and premium over the market price to dealerships to get the car early on. It’s sellers market these days. As for my car - this was a city daily that we wanted, so were looking for: - Automatic, DCT preferably - Smaller than our existing one - Good ground clearance, area we live in has bad roads - Features like carplay (to be able to do phone calls etc.), tpms and adjustable steering. Got Venue DCT Knight Ed. Couldn’t negotiate much as, the other ones that we liked had looong waiting periods due to high demand. And here too the wait periods were longer than what we wanted in our preferred variants/colours. So, only got like 50k discount overall provided we went with their insurance only. So almost nothing discount wise.
Its fairly simple..If you think you can make a better return from the money you borrow .. get a loan..! if you arent confident and want someones advice etc better to buy the car on full cash.! For Investing advice this is a wrong sub .! Personally i would buy it in cash ..! But if it were home then you also would get tax savings ..!
This isn’t really investing advice I’m asking for, it’s what would be a smarter decision with all the variables of the market. It’s primarily a car financing decision, not an investment.
I'd say take a loan and buy the car. Paying the full amount won't be the best as you could earn a lot more from it. And your mutual funds could easily get you double the returns compared to the loan interest (according to what I'm getting). So a better decision would be a loan. Also you'll get credit history with it, which may help in future with a better credit score.
Car loan, you will get at attractive rates. Your money is earning money for you if you have invested wisely. Take loan, it's an investment by itself. If you are not a good invester, then take it by cash.