[carboy]

Originally Posted by shankar.balan

If buying brand new, then buy on loan.

Why should one buy on loan if buying a new car?

[shankar.balan]

Originally Posted by carboy

Why should one buy on loan if buying a new car?

When buying new + expensive - I would buy on loan.

If buying new + relatively inexpensive and if cash is readily available, then I would just pay and take.

I paid up full in the case of my Parents Toyota Glanza - bought brand new 6 months ago.

I also paid up full, in the case of my used 7 year old Mini Cooper, 3 weeks ago.

But this kind of “quick draw” “cowboy” attitude, argues that one has either “saved” the money (as I did) OR that one has ready liquidity which many of us do not have in normal circumstances.

[carboy]

Originally Posted by shankar.balan

When buying new + expensive - I would buy on loan.

You haven't really answered my question.

[sahil624]

I think one should opt for loan only when they have invested their money in some avenue which returns greater than the interest bore on the car loan. Otherwise it just makes sense to go for a cash purchase. Also, it depends on the situation, for example currently the loan interest rate is benign it makes sense to go for a loan at around 7.5% to 8% and keep your money invested in the avenues returning greater than this.

[lazy]

Salaried folks buying car for personal use - always upfront.

Someone - "But I cannot pay the amount required to buy the car I want, but I can afford the EMI for the same car."
Fact - You cannot afford that car, buy a cheaper one.

cheers