Car loan or use the savings?

["Talk di tings dem"]

What would you do if you are in need of a new car and you have $5000 in saving (for rainy day), would get a car loan or use the saving toward this new car?

 

[MoneyMonkey]

You need to have an emergency fund of at least $1000. So, look for a used $4000 car and buy it by negotiating for a good deal from a seller. Then start working on building up your savings again, and stay out of debt. Eventually you can save up, say $8000, for a much better car in a couple years.

I love my 1995 Mazda 929 that I bought for $4000, and it only had 71,000 miles on it two years ago. Being debt free is awesome. Oh, I could buy a $20,000 car and have a loan, but why put that much into transportation. I'd rather have the money invested.

 

[MoneyMonkey]

You need to have an emergency fund of at least $1000. So, look for a used $4000 car and buy it by negotiating for a good deal from a seller. Then start working on building up your savings again, and stay out of debt. Eventually you can save up, say $8000, for a much better car in a couple years.

I love my 1995 Mazda 929 that I bought for $4000, and it only had 71,000 miles on it two years ago. Being debt free is awesome. Oh, I could buy a $20,000 car and have a loan, but why put that much into transportation. I'd rather have the money invested.