Should You Pay Cash For Your New Car Or Finance It?

Click Here For More Specific Information On:

byAlma Abell

Once you have found the perfect new car at a Chevrolet dealer in San Antonio; one that meets your needs and your budget it is now time to figure out how to pay for it. Very few people pay cash outright, a small percentage lease the car by far the greatest majority of Americans finance the purchase.

All three possibilities have their advantages as well as disadvantages, the choice really depends a lot on the car that you are getting, how long you expect to keep it, do you have enough cash and if not, how is your credit score.

Cash payment:

YouTube Preview Image

Paying cash for the car obviously eliminates any finance fees or interest which, on a typical automobile purchase can add up to several thousand dollars. If you do buy the car for cash it is yours, you can do what you want with it and you and, unlike a lease; you can keep the car for as long as you want.

When the car is yours it might prove easier to sell. If the car has a lien on it and you want to sell it you will have to deal with the bank or finance company to get a free title before you actually can sell it.

Buying the car with cash can take a huge chunk out of your savings and if you find yourself faced with a rainy day in the future you may find yourself financially strapped. Remember, you have spent your savings ion an asset that loses value as it gets older, the truth is, buying a car with cash is not a sound financial decision.

Financing:

Other than the small percentage of people who opt for a lease, the greatest majority of people finance the purchase of the new car. Just like leasing, financing is available from a number of sources including the Chevrolet dealer in San Antonio, banks, credit unions and finance companies.

The nice thing about financing the purchase is you are driving a new car and someone else’s money paid for it, this means your savings are left intact, you money is left available for other needs.

The availability of loans with an attractive interest rate depends on your credit score, the better the score the better the rate of interest, the worse score you have the more difficult it is to get attractive terms.

The thing that must be taken into account is that the car is not yours until you have made the last payment. If you want to dispose of the car before it’s paid for the process must involve the creditor which can make things awkward.

If you are thinking of buying a new car you are invited to visit the showroom of Wommack Chevrolet, your Chevrolet dealer in San Antonio with the largest selection of new and used cars available on attractive terms.

This entry was posted on Saturday, March 31st, 2018 at 2:48 am and is filed under Skoda Cars. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

Comments are closed.