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For myself, I've bought cars in different ways. A lot depends on what resources I've had available, and which method is most cost effective at the time. Part of the criteria... is borrowing expensive, or is saving worth while?
If you don't have assets, then it is likely to be expensive which ever way. The more a car costs, the worse the hit is going to be in most cases.
I've bought outright, passed a cheque across the desk for a new car on two occasions. Saving interest rates were not good at the time, so cheapest way was to pay for the cars. Current car I went for lease purchase, as if the car was any good I could buy it at the end of the lease. Was the cheapest way at the time, as my investments were earning good money and made the car a cheaper purchase. But when the financial system went pear shaped, about the time the lease was up, rather than upgrade, I extended the lease arrangement, but after a few months decided to keep the car and clear it with a final payment, as saving rates were low again and not about to change.
I'm hoping to get a new F31 later this year, not sure which way to go at present. I could buy it outright, but I'm tempted to share it out a bit, use some assets that are not earning much, along with a smaller loan. May lease again, if the rates are really competitive and keep the cash for the balloon payment.
If I wasn't in this position, where I have options and some control, I'd be looking at a cheaper, or used car.
HighlandPete
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