Can you save money buying a car with cash?
Not really, despite the common perception that "cash talks". When you think about it, the dealer get his money regardless, from you, or from your finance provider. In fact, when the dealer 'helps' you get financing in place, he gets a cut of that, so he actually gets more if you don't pay cash. So don't play the cash card. Just negotiate for the best price you can get, and only then put the cash on the table.
I want to buy a car, but I have no money. What can I do?
I am not sure what to make of it, you want a car or need a car. Want is something which is transient and you would keeping wanting something or the other which you cannot afford.Do remember a car is a depreciating asset and will lower in value over time while you would end up paying interest because you borrowed the money in the first place.Let me give you a quick calculation from a personal experience-I bought a new car in 2012 for 8.5 LakhsI sold it in 2016 for 4.5 lakhsI drove the car for 65,000 kms in the 4 years.Spent 50k on maintenance and insurance (It was a Toyota not very expensive to maintain)The car gave me an average mileage of 17 kmpl on diesel (let’s assume a price of 50 Rs per litre)Now comes the math-Cost per km - (4,00,000+50,000, + 65,000*(50/17))/65,000Final cost per km. - Rs. 9.8 (and this cost would have been more if I hadn’t driven more than 15,000 kms every year which is a good amount of driving who visits highways occasionally)Now Ola/Uber charges you Rs. 6 per km. Rethink if you really need to spend so much, unless you yourself want to drive for Ola or Uber. Then the math would change
How can I buy a car when I don't have money?
Hi PeggyIt is fairly easy to buy a car even when you don’t have money. All you need to do is foot the margin money, which generally is about 10% of the vehicle cost. Rest can be funded by any lender.Getting a car loan is also fairly simple and the formalities can be completed at the vendor showroom itself.Best wishes for buying a new car.
How much cash can I use to buy a car in India?
For a business man claiming depreciation, maximum cash paid for purchase of fixed assets shall be rs. 10,000/- per day under Income tax Act.In case you are not claiming depreciation and a normal person, maximum cash paid is limited to Rs. 3Lacs from 1st April, 2017. The amendment is in the latest budget known as Finance Act, 2017.
How do I convince my parents to let me buy a car with my own money?
Haha I was in the same situation as you a month ago, All you have to do is try to make a "deal" with your parents, as meaning, talk to them that you'll promise them you'll pay for your own Insurance, gas, maintenance, etc when you buy this car, hopefully they have second thoughts and tell you its ok. If not... go for plan B...show that your mature enough so your parents can trust you. Driving is a privilege, and while your living with your parents, u go by their rules. if your not showing them your mature enough for a car, then obviously, they wont let u get one. OR plan C... ask them "Mom, Dad, I have the money to buy a car and I need to get around town. I can't take public transit, Plus, if something DOES go wrong with it, I will have over a thousand dollars to fix it, and if I can't, I would learn from my mistakes"...something like that.
I want to buy a used car but I only have enough cash for half of it. Can I pay for half of the car and get a car loan to pay for the other half?
Yes, absolutely. Cars depreciate so fast that you should borrow the least amount you can get away with, nothing if possible. The last car I bought was paid 100% with cash, no loan. So, it's impossible for me to be “upside - down” with that car, which is when you owe more on the loan, than what the car is worth. My other car I did a similar thing. When I bought that one, I traded in a car and added $2000 of my own money, and only borrowed $5000.Now, the down side of this is that you generally won't qualify for long term low interest “new car” loans, you'll usually be offered a signature loan, which will be shorter term and slightly higher interest. But again, that's good. It means you'll be paying less overall for the use of that money, and if you get a quality car you might be able to pay off the loan before the car loses much value, leaving you free and clear with trade in value for your next car.Good way to go if you can get it. Talk to credit unions about this, they love small loans.
Can you use you FAFSA money to buy a car for transportation?
Whatever money you don't use, you will get back in a refund it. It doesn't go back to anyone. This is because some schools do not allow students to use their funds to buy textbooks and they have to wait until they get the refund. Really you could use the refund for whatever you please but honestly you should stick to tuition, textbooks and supplies used in class/for homework(like if you need a laptop or Windows Office to do a class). Many students do of course abuse it. While a car is required to get to school, honestly you should get a job and save up for a car. There are many students who could use that money you're not using to actually help pay towards school and not things most have to work for like a car.