You have find your desired car and set up your mind to buy it. But how are you going to arrange money for it? Are you paying cash or getting it through car finance? When it comes to making the payment through cash, all that you would require doing is make a simple transaction. After this process, you would have the vehicle under your possession. But have you ever evaluated the pros and cons and buying a car by cash vs loan?
Cash or loan? What would be preferable?
Paying cash has lots of advantages with the prominent one being saving money from paying interest of loan. But what if you suddenly face any unplanned monetary need after you spend a huge amount of money on your car buy? Moreover, there are also enough reasons that call for buying a car on car finance sunshine coast rather than cash. When you opt for car financing services, you would generally op for a better looking vehicle, since you need not have to make the entire payment upfront. Say, if you have to pay $7000 for a car, when you opt for down payment, you may feel that pinch in your pocket. On the other hand, if you carry a good credit rating, you would be able to get hold of a brand new model too and at a higher price.
One vital point that you would have to keep in mind, in the case of down payment financing is you will need to make the payments monthly. You will also have interest rates included, which is similar to a fee that you will have to pay to the lender, for having permitted you to borrow money.
Let’s go through the options now and what would turn out being good for you:
- If your credit history is good, you will be qualified for low interest rate. At times when customers finance with car dealers, they could also end up getting 0% interest, and this is definitely the best choice to grab. This basically means free money.
- Opting for financing in such a case would be the best possible option. You would lose simply a small amount. You will also be able to keep cash in your bank account and you could pay it for other expenses or debts, projects or investments. As said before, at times we may have unanticipated expenses and we would need to deal with them. This way spending all of your savings on a brand new vehicle will keep you lurking n a very insecure position.
- The other alternative and probably the best are to utilize a section of your cash, in combination with financing. The more amounts of cash you are willing to pay, the lesser would you need from financing. Hence, the positive thing here is, you will be paying for a small interest rate, with money getting stored in your bank alongside.
To get the best loans and at an affordable interest rates, you need to choose the right loan provider. Choose the provider based on reputation, business experience, rate of interest as well as comparing the same with a few other players.