Borrowing money from family and friends instead of taking a car loan

Everybody likes free stuff because there’s no need to pay for it and in this money-minded society, something free from time to time comes in quite handy actually. However there’s no such thing as free car loans and I doubt very much that there will be any such offers in the future.

The reason for this is quite simple – if lenders start free car loans schemes, they will be giving away free money to everyone. And who wouldn’t sign up to these schemes? I would and I know everyone else would as well! So this is very much unlikely to happen unless a lender has too much money and is looking for ways to distribute the cash through unusual ways.

If you are badly in need of some free cash to buy a car, then your best bet is to ask the parents or some generous relatives or friends. You will be surprised how many acquaintances will be ready to give you money without asking to pay it back if you have good relationship with them. I’ve done it myself if you want to know when my best friend was in need of some instant cash although it was not for a car loan but to pay his mortgage. Obviously this depends how loaded (or how comfortable when it comes to money) the person you’ll be asking is and how much money you are looking for as well.

However there exists interest free car loans which are not exactly free but do offer some benefits to buyers. So if you said “no” to asking acquaintances, then may want to consider this type of car loan. For a set time, you do not pay any interest on the car loan and if you manage to repay everything within that time then you would not incur any penalties. For more information about this, please see our interest free car loans article.