Do you think financing is the way to go ?

Question

I am thinking about 2 things;

1) buy a bmw 2005 530i for about $28k - pay by cash

2) finance the bmw 2005 530i for $28k + taxes & dmv fees is about $34k I believe

which one is better ? which one would you do ?

Answer 1

If You Have The Money Just Pay By Cash

Answer 2

Always Pay cash when you can, or at least put down 20 to 40%, then have a plan to pay the loan off early.  Do not accept financing that does not allow you to pay off early.  

This is also an opportunity to start building a good relationship with a financial instituation (Bank, Credit Union etc).  As you build a history of using credit correctly, and  paying off debt correctly, you will build a report with said institution and will find you can get better offers/lower rates/ and specialized service for future investments and expenses.

Good Luck.

Answer 3

Even if you pay cash you have to pay the taxes and DMV fees.

Answer 4

clearly number one is the better choice, but if you don't have the money then financing is your only option.