Buying a car on credit? There are strange views. There people argue indeed so that, if you want something partout and can not afford it, you should buy it on credit. This is of course nonsense. As if something would given to you and you would repay the money never. So if you can not afford something from your monthly budget, then on credit now less than ever.
However, in principle to reject a credit would also be wrong. Imagine companies that received a large order and must buy machines. In this case, a credit bridged meaningful the gap between immediate expenses and later expected revenues.
And for private individuals? There are people who in principle buy new cars. You know that such a car loses a lot of value during the first years, but you compensate this by the fact that you drive the respective car a long time. So you save repair costs for many years and decide later before any repair whether this is still worthwhile.
For example, if during the house building the old vehicle not hear the request, to endure still until the house is finished, then it can be quite useful to alleviate the current bottleneck with a credit. Imagine, you now buy a used car and has then in addition to the psychological stress of house building the hassles with defects and repairs. Apart from the fact that one needs the car every day.
However, many people forget to ask the lender the right questions. No, percentages are not a good way to understanding. They always have something relative. This reminds me of the phrase 'up to 30% discount'. What does that actually mean? Am I among the lucky ones, to those this discount is given? Or has the shop maybe only an absolutely uninteresting part for me on which this discount will given?
So, for pointing out, for example, '2 percent' I can't buy nothing. In addition, it's vice versa. A borrower can afford less in the foreseeable future. Of course, one would have saved better and then made the spending. So the lender participates financially. And exactly this proportion I would calculate to the last penny.
There are e.g. people (like me, too) who rarely but certainly feel the need to reward themselves. But maybe thereto just missing the money. Up to this point nothing is wrong. If these people are honest with themselves, they calculate before buying on credit, how much more expensive is the object of desire then. Then they can struggle with themselves whether the desire that's worth or not.
This procedure has another advantage: you can compare. Also one does best with real numbers. Because at percentages there is the tragedy that 'per centum' means 'of hundred'. So there is always a relation to a real-existing sum. But on what sum? The introduction of percentages was the first fall into sin. Since then, one can prove with statistics almost everything.
So, if you want a personal loan from your bank or comparable providers, let calculate the total sum for all years the credit is running. Should someone mention the word 'variable' and, therefore, can not successfully deal with your request, immediately leave the salesrooms. Believe me, you can avoid problems with the spending of money when you consider at each purchase how much money it devours exactly. 02/14