Should I get a car loan for an expensive car or buy a used $7,000 Honda in cash?

"I want to get a reliable used $7,000 Honda, and I have the cash to buy it.

But I was thinking about getting a loan for a more expensive car instead.

Which is the better option?"

“You can definitely find a Honda for $7,000 that will last you years. The bonus is that you’ll have no debt either.
If you get a loan for a more expensive car, you’ll instantly fall into debt on a depreciating asset. You’ll also have to budget for full-coverage car insurance, which can cost you several hundred dollars a month.
In almost every scenario, paying cash for a car that’s reliable is the better option.”
Eric Schad
Answered on Jun 10, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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