Would you buy a new car if it costs 9/10 of the amount of money you have?

Question

With our family expanding, we need a bigger car. If not, we will not be able to get anywhere together. The car we have simply won’t fit everybody. While we can afford it, we will lose 9/10 of our savings. Is it worth it to spend that money or should we make a loan and pay interest? Or should we not buy it at all? In that case, some of us will have to rely on taking buses which is very inconvenient.

Answer

I would put like half cash and get a loan for the remainder so u have some still in your saving and the loan won’t be as bad.

Answer

I wouldn't use cash if it would take most of your savings. I'm always paranoid about emergency situations (I've been in many the past 5 years where I'm SO glad we had a safety net savings-$5k vet bill, several moves, unexpected medical bills for my child). We just got a new car a month ago and got an auto loan through our bank with 2.99% interest.

Answer

We did this! Bought the car cash. We have built up our savings again and don’t have a car payment.

Answer

Even a slightly used vehicle will save you a lot of money!

Answer

Are you able to do a trade in with a dealership?

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If it’s a question of car seats fitting, there’s a few brands that fit three across ie Diono, Clek.

Answer

Do you mean buy a car outright with the cash you have? I wouldn’t. I have just always built a car payment into my budget. If I happen to have paid a car off and am still driving it, I put that amount into savings every month. I would use part of the savings you have for a down payment and take the monthly payment. I prefer to have cash on hand in case of emergency even if it means I pay more in the long run due to interest. If it’s just a matter of everyone fitting, clek and diono seats can fit 3 across.

Answer

We upgraded but we got a 0% financing through the dealer. Yes i’m sure the final price had some hidden fees to make up for the financing but we were comfortable with the monthly payments. We did use some of our savings for the required down payments, but not all of it. We didn’t want a loan with interest. 
I personally wouldn’t use most of our savings to buy a car. You never know what can happen.

Answer

I’d buy in cash if you have it available, we were in a similar predicament and upgraded to a much larger SUV and I don’t regret it at all

Would you buy a new car if it costs 9/10 of the amount of money you have?

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