Do I Take A Loan To Buy A Car?

I'm thinking of taking a loan from the company I work with, to buy a small car. I've been working there for 3 years now, I've never taken a loan either from the Company, or from a Bank, or anyone else.

My salary is good. I live with my parents, so I don't spend much on feeding and house rent,

I'm thinking of taking a loan from the company I work with, to buy a small car. I've been working there for 3 years now, I've never taken a loan either from the Company, or from a Bank, or anyone else.

My salary is good. I live with my parents, so I don't spend much on feeding and house rent, though I help out financially any way I can. Most times, I even put gas in their cars. So I don't seem irresponsible. I spend more on transportation.

Is it wise to take a loan from my company to buy a car? I've looked at the repayment plan and interest rates, and I can afford to have those deducted on a monthly basis.

Should I go ahead with the loan, or do I wait it out till I have enough money to buy a car? Cos I feel I'm waiting for something that won't happen.

Other answer:

DN:
I've taken two loans to buy the two cars I've owned. I always pay more than the minimum payment required per month to pay it off quicker and bring down the interest overall. You should know how much you can afford to pay each month, so try to put down a large enough deposit so you can pay it off within two-three years easily, if not sooner. It will help you build credit and you do not have to waste all of your savings at once.

It's a common way to buy a car, so I think you can do it if you want. If you do not have enough credit history, I suggest you bring one of your parent's along in case you need a co-signer. Hopefully your parent's have good credit and some income, but their income might not matter as long as your income is enough to qualify.

Dan B:
Financing a car will cost you about $400-$600/mo just to park in in the driveway (mostly car payments and insurance). Of course it depends upon how much you finance. Many people just look at the payments without considering the operating cost (gas & maintenance) that can put a severe ding in a month's budget. Crunch your numbers to ensure you can afford a car. They are an expensive form of convenient transportation.
Re Vera:
My general rule of thumb is to never borrow money when you can avoid it. And you REALLY never want to borrow from your employer. It's a huge conflict of interest and can put you in really awkward situations down the road.

If you need a car, not just want one, and need a loan to get it, get the loan from a third-party bank or credit union.

Skoda John:
After 3 years you should have saved enough to just buy a car.
g:
That would entirely depend on the terms of the loan. What finance percentage rate and at what term (length of time) is your company willing to offer?
Love big words:
pay cash