Bank vs Cash and why?

[victor]

Hi Fellas,

 

Good afternoon everyone, I am contemplating on getting the bank finance or use my cash for my next car and why?

 

Pros

• Save my money for something else
• Keep paying in small EMI, that doesnt impact budgeting of other things

Cons

• Too much hassle and paperwork for weeks and weeks for getting it
• Too much hassle and paperwork for weeks and weeks for closing it
• Car Seller doesn't prefer bank transactions
• While selling again same drama.

Conclusion: Is it worth banking a car when you have spare cash, means bank hassle worth saving that 2-3% extra expense (lesser than one year insurance).....? I hope you got my confusion.

[Danny]

Well if you have surplus cash then off course go with Cash and avoid all the hassles and paperwork required for bank loan. Secondly if you thinking big value and planning to keep for long term like 3-5 years then bank loan make sense that over required hassle you will save your equity for 5 years with very little interest.

[amitaj]

I think bank is always good in this country as their interest is toooooooo low as compare to lot many other countries car loan, and you can make good use of your cash.

 

Hassles is just temporary for few days to max week, gains are bigger like few thousand dirhams at least.

[amid]

Bank always is advisable or even better as no interest for 5 years from many dealers during ramadan month. Do you know these offers already...?