Should you buy a car with cash or get a loan? Curious what most people do

There’s some scenarios where novated leasing might be slightly better than buying outright. But I can’t see how typical financing would be a better idea over buying outright.

Just remember HPI is not APR. Its not reducing balance.

Pay cash unless the money can make more for you than the loan might cost.

Borrowing money for a depreciating asset makes no sense imo.

novated leasing might make sense in some cases, especially with salary packaging benefits. I think my mate’s leaning towards keeping liquidity just in case things get tight, but like you said, unless there’s a clear advantage, paying interest just feels hard to justify.

Thanks for the reminder!

True that — if your cash is working harder than the loan interest, then makes sense to keep it. But with rates being this high, not sure how easy that is unless you're into some solid investments.

A car is definitely a depreciating asset. I guess the only exception is if someone’s investment returns or business cash flow can outperform the loan interest. Otherwise, yeah, paying upfront makes more sense for peace of mind and long-term savings.

Yeap so true.

I love a good bot account

depends on your situation if you can use a company as a vessel or even novated lease. If you run the numbers and do the calculations you’ll find out what’s better for you in terms of having cash in an account or in a car or under a loan

Depends on the loan interest rate. For discussion’s sake let’s say it’s 1% p/a. Borrowing $60k at 1% and investing it in something that returns 5% makes more sense than just spending the 60k in one go.

Really depends on individuals circumstances. Novated Lease if there are Taxation benefits otherwise if there’s no need for keeping a large sum of money pay for car in full .

Thanks for sharing, I've advised my friend to go to a financial planner for help.

Personally i prefer cash, but my friend seems like financing.