How to Finance A Car the Smart Way

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Some people say that the one single monthly commitment that can make or break your wealth-building is car loan payments.

Is every car loan an upside-down loan? We know there is a straight line loan interest, but most cars depreciate a lot faster than we can pay off the loans, especially if we take out a 7 or 9 year loan period.

So what is the best way to finance a car purchase? Should people only buy with cash, and only if they can afford the car in full payment?

You will be surprised that I actually preferred the longest loan tenure.

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For more personal finance hacks, download my ebook packed with 44 money tips. It is free, and I'll pay you RM5 if you can't find anything useful by reading it for 15 minutes:
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wow, there is a lot of motivation to move on! we should start right now!

innadoroshenko
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No matter your country this applies 😄🇺🇸💯👌🏼

Typing.._
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If investment return is 8%, we should pay off car loan right? Because car loan 5% effective rate is more than 8%

blursun
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Hi KC.

Is there anyway i could chat with you through text? I need an advice for my financial planning.
After watching some of your videos, i still dont fully understand, maybe i am just bad with numbers.

I hope you can help me.

helmyibrahim
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What do you think of multi-tier financing for a car? There are some car brands offering such tier loans where you pay lower monthly repayments during first 2-3 years, then it increases the next 2-3, and increases more for the last 2-3 years of financing tenure.

daengdhamiry