Should you take a loan to buy a car?’ Well… It depends…
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Here is the full text of the video:
Everybody this is Shlomo here. And today I’m going to answer the question,
Should you take a loan to buy a car?
So the answer is “Depends”.
Depends on the source of loan that you’re getting it from and this is due to the interest rate that you can get from different sources.
So let’s say you’re getting it from a credit card company. Then the interest rates would be very very high. Would be 10,15, 20% a year which is very very high. While if you get from other sources which we gonna talk about in a little bit. It’s much much lower than it when it makes it worth it.
Why is it worth it?
Because, the interest rate that you’re paying every year on that money is very low and you can make that money make more interest or percentage-wise doing that year then, it’s actually worth taking the loan and then keep that money and make more money from that.
So as an example, I have a loan on my car and I’m paying 2 ½ % a year but I almost positively know that I can make on that money more than that 2 ½ % therefore, I chose to take that loan. While if I would have take it from a credit card company that would be again 10 – 20% and for this, I’m not sure and therefore, I prefer it’s better not to do that.
To sum up, this is really depends on the source of loan that you get. I personally get those very low interest loan through in (IRA?) which is a different topic which we can talk about in different time.
Leave your comments here and ask some questions down at the bottom.
Thank you very much.