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Mountain Posted 20 years ago
Business & Finance
Finance a car or a house??
Could someone please explain to me what it means when you finance a car or a house? Or finance anything. Thanks
Top answer
Hi, It's a somewhat idiomatic expression. If Tom buys a new car and finances it, it means Tom borrows the money to pay for the car and then has to repay that money, with interest, every month for a period of years. If he is rich, he will just buy the car with his own money and will not have to finance it.
- Hi, It's a somewhat idiomatic expression.
- If Tom buys a new car and finances it, it means Tom borrows the money to pay for the car and then has to repay that money, with interest, every month for a period of years.
- If he is rich, he will just buy the car with his own money and will not have to finance it.
- You can use this expression for the purchase of other things, eg a fridge or a TV.
- However, we usually don't use it for the purchase of a house.
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6 Answers
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Hi,
It's a somewhat idiomatic expression.
If Tom buys a new car and finances it, it means Tom borrows the money to pay for the car and then has to repay that money, with interest, every month for a period of years.
If he is rich, he will just buy the car with his own money and will not have to finance it.
You can use this expression for the purchase of other thi
It's a somewhat idiomatic expression.
If Tom buys a new car and finances it, it means Tom borrows the money to pay for the car and then has to repay that money, with interest, every month for a period of years.
If he is rich, he will just buy the car with his own money and will not have to finance it.
You can use this expression for the purchase of other thi
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Thank you, Clive.
So finance does not mean that you're paying with your money but with a loan and pay interest? Or it just means that you're borrowinng money to pay for the car and pay interest for that loan?
Sorry if it doesn't make sense. Thanks
So finance does not mean that you're paying with your money but with a loan and pay interest? Or it just means that you're borrowinng money to pay for the car and pay interest for that loan?
Sorry if it doesn't make sense. Thanks
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Hi,
So finance does not mean that you're paying with your money but with a loan and pay interest? Yes
Or it just means that you're borrowinng money to pay for the car and pay interest for that loan? Yes
I don't see the difference here.
Best wishes, Clive
So finance does not mean that you're paying with your money but with a loan and pay interest? Yes
Or it just means that you're borrowinng money to pay for the car and pay interest for that loan? Yes
I don't see the difference here.
Best wishes, Clive
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if you're paying the car monthly with your own money but with interest, would you still consider that a finance?
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Hi again,
if you're paying the car monthly with your own money but with interest, would you still consider that a finance?
Yes. For the car vendor, it's basically the same thing. They don't get all their money up-front.
I think that most, or many people would just pay for the car completely a
if you're paying the car monthly with your own money but with interest, would you still consider that a finance?
Yes. For the car vendor, it's basically the same thing. They don't get all their money up-front.
I think that most, or many people would just pay for the car completely a
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