SHOULD YOU FINANCE OR PAY CASH FOR A CAR?
August 24 2023, L’ami Autocrédit
You just found the vehicle of your dreams and you’re now hesitating between financing and buying a car with cash.
There are advantages to both financing and paying cash for your next car.
FINANCE A CAR OR PAY CASH?
If you decide to pay cash for your car, then you’ll only have one single payment to do once your vehicle is delivered. You’ll be the owner and you won’t be forced into monthly instalments. In addition, you won’t have to pay interest charges.
In contrast, if you decide to buy your vehicle with car financing, you’ll also be the owner of your car, but you’ll have pre-established payments, an interest rate and you’ll have a certain amount of time to pay your vehicle. This method will allow you not to disburse the full amount of money to cover the cost of your vehicle in one shot. You’ll be able to spread out your payments over a period of time that you’ve chosen (3, 4 or 5 years, for example).
Financing a car is often the best option to consider, especially if you have other financial responsibilities and you don’t want to take out this substantial sum all at once.
THE ADVANTAGES OF PAYING CASH OR FINANCING
Here’s in a nutshell what you should have in mind when the time comes to buy your next vehicle:
Paying Cash:
• One single payment and that’s the end of your obligations
• No interest charges to pay
• You’re the car owner
Car Financing:
• You can spread your payments over a period of time (the duration of the contract remains to be determined)
• You’re the car owner
• You don’t have to pay the full amount for your car in one shot
In short, there are advantages to both options. However, if you prefer not to have financial obligations, buying cash might be an option to consider. In the other scenario, you’ll have less to pay each month than if you had decided to pay everything in one shot. Spreading your payments will allow you to take care of your other financial obligations more easily.
To wrap up, come and discuss these options with our specialists at L’Ami Auto Crédit in Chicoutimi, La Malbaie, Baie-Comeau, Alma and Sept-Îles. Our experts in the field will give you sound advice, and in the end, you’ll be able to choose whichever option you prefer. Make an appointment today.
