When Is A Car Finance Without Down Payment Interesting

The only option when it is financially important to pay interest on a car loan is when you have a more profitable option for your cash money and when the interest rates for car loans are very low. At the time of writing, the interest rate for a car loan of 15,000 euros over 5 years averages between 0.89 and 1.80 percent .

So borrowing 15,000 euros and investing his savings in shares or other financial products with a positive return is a good thing. Borrowing money in this case is more profitable than paying the car with savings. An increase in the car loan or a negative atmosphere on the markets can make a loan a lot less interesting.

What if you do not have enough money to pay a car in cash?

We assume that you do not want to take out a car loan. Anyone who wants to pay a car with their own contacts but does not have enough money for the car has two options. And here comes some farmer’s wits about: option 1, you’re looking for a cheaper car. Option 2: you save a little longer until you have enough money.

Taking out a loan to buy things that you can not afford is just a bad decision. You pay interest on something you can not already afford at all. That is a considerable loss of value per day. Similar to the purchase of a television with a credit card and the repayments get dragged.

And then you can ask yourself another question: do I really need that car (or is it a strong desire)? Those who do not have the necessary money are therefore better looking for a car that suits its budget instead of its ego. That way you have to finance as little as possible. So you will still pay for an item with a strong depreciation but at least you will not buy “too much” car for that money.

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