Here is my situation:

I have about $9000 cash in savings. I need a new car (I will buy used, though). I have qualms with financing a car, as I will not be able to afford more than $200/month. Also, I don't want to carry a car loan longer than 2 years, as I have an additional mortgage that I will have to start paying off within two years. (And, quite frankly, the thought of two additional payments per month makes me quite nervous.)

I want a car that will last for as long as possible, low mileage, reliable, etc. I have heard that putting down a chunk of cash and financing the rest is not a good idea. I'm stuck! Do I pay cash? Should I put down half of the 9,000 as a down payment and finance the rest? Do I bite the bullet and finance? Which is the best way? Help!!

Any advice?
Thanks!!

Personally, I would give yourself the loan and save on interest. You could find a great used 01-05 Honda or Toyota with low miles from a private seller for $6000-$10,000 and talk them down. Then just pay yourself back in monthly payments. As long as you make sure to keep up with the maintenance, either company should last you a long while. Just be sure to get a carfax and have it checked out at a good shop. Goodyear is really nice about having cars checked before you buy. They have done all mine for free so far. Your probably going to find it hard to get a loan for a inexpensive used car loan unless you want to get something above $14k, which is about the asking price for the same used 01-05 Honda or Toyota from a dealer. If you go with a dealer, 20% down is optimal. If your going to finance from a dealer or bank the more you put down the better. You don't want to be underwater on a depreciating auto and paying out thousands more in interest. Then again, you don't want to spend all your emergency fund money, if that is what your using. If that is the case, you would be living above your means and asking for financial trouble. Also, if your not good at haggling, your going to find yourself getting the wrong side of the stick more with a dealer too. Your credit will play a hugh part in your interest rate and if you will even get approved. Right now, there are some awesome deals out there to be had on new cars, especially if your in a really good position money and credit wise. But it sounds like your just wanting to limit the amount of debt you take on and save your money, which is what I would do. Hope that helps. Good luck.

Buy it for cash you get the best deal that way period. After all money talks and BS walks.

Take the advice of an individual who has purchased new and used vehicles. A used vehicle will hold it's value for a much longer period of time than a new one. Also, repair expenses typically are less costly than on a new vehicle.

My advice would be to have any car you are serious about purchasing inspected by a professionally licensed mechanic. Ask the mechanic what kinds of vehicles he sees the most, and which ones he would recommend to buy. Even better would be to find out what he drives.

Once you find the deal, pay cash for it. Don't forget to pay yourself back overtime though. Act as though you loaned yourself the money. You can even pay yourself back with interest, accruing more savings.

my suggestion, just buy a vehicle for 9000 and then you won't have to worry about paying for a loan...you can find decent vehicles out there for that price; you just have to find the right place in your area.