Zero Down Payment

FreeToFly

12 Jan 04, 19:11

Hi,

If I decide to leave my job with some savings this year and start my own business, enough to sustain myself for a while with a new car, lets say Mazda 6 2.0L, is it wise to take up zero downpayment and 10 year loan...........my thinking is cash is king......what do you think?

The car prizes have been dropping, anyway can analyse the market in mid 2004?

Appreciate....since I am new to car ownership....

Ah Wei

12 Jan 04, 23:29

Hi,

Its always great that you chase your own dream, and i really admire those who can give up their job for their dreams nowsaday, good luck to you in your business.

Anyway, its not advisable to loan a car for 10yrs, as you can calculate, the interest will kill you! You might be paying as much as 25k-30k interest for a 100k car, if you loan 10 yrs. And maybe save abt 8-10k if you loan for 7 yrs (Just a very very rough estimation).

Also, I feel that since you are into business now, and the risks are there, maybe you can opted for a cheaper and smaller car. The rd tax and insurance etc for a 2l car is not a joke. Just my opinion. Of cos, the final decision is up to you. Alternatively since you are into business, why not get a panel van for use, might be a better way out.

FreeToFly

13 Jan 04, 13:38

Originally posted by Ah Wei:
Hi,

Its always great that you chase your own dream, and i really admire those who can give up their job for their dreams nowsaday, good luck to you in your business.

Anyway, its not advisable to loan a car for 10yrs, as you can calculate, the interest will kill you! You might be paying as much as 25k-30k interest for a 100k car, if you loan 10 yrs. And maybe save abt 8-10k if you loan for 7 yrs (Just a very very rough estimation).

Also, I feel that since you are into business now, and the risks are there, maybe you can opted for a cheaper and smaller car. The rd tax and insurance etc for a 2l car is not a joke. Just my opinion. Of cos, the final decision is up to you. Alternatively since you are into business, why not get a panel van for use, might be a better way out.

Thanks and will consider your advise.