Are there benefits to buying a car without financing?
There are many Americans who see buying a new car the same way that they see pulling teeth: painful, but often necessary. For many, having a car is not a luxury. However, since cars are one of the most expensive purchases that people will make, it isn’t always easy to find a way to pay for a brand-new vehicle. That leaves more and more drivers behind the wheel of a used model, which can sometimes be too expensive as well. When you need a new vehicle, there are multiple ways to buy one, but there is some conflicting information on which way is best.
When most drivers go to buy a vehicle, they are either going with financing or cash in hand. Buying a car in cash in almost unheard of these days, but there are some who think that paying up front for their vehicle is the best way to go. When you buy your car with cash, you’ll be able to avoid paying interest on a loan balance, as well as not having to make monthly payments. However, there are some downsides to paying for your vehicle with cash.
[Related: Best Pricing on a Used Vehicle]
Why you should finance a vehicle
While paying for your car up front can be smart, it is also very difficult. Cars can be expensive, and when you pay with cash, you’re limited to how much you have on hand. Depending on how much you were able to save, you could end up scraping the bottom of the barrel and end up with a lackluster automobile. Putting that same money towards a down payment and then financing the rest lets you buy the vehicle that you want without having to pay for interest on the entire thing.
There are some benefits to buying a vehicle with cash, but for those who aren’t able to afford it outright, or people who are looking to build credit, financing is an excellent option. You can either financing through the dealership or through a credit union, and you’ll truly be able to find the car of your dreams. Visit one of the five OkCarz locations to learn more about how you can apply for financing, even with a less-than-stellar credit score.