Thinking of buying a brand new car? Confused whether to buy it on cash or finance it? Don’t panic, after reading this article you got answers to your questions. Everything comes with pros and cons and so does buying a car on cash or finance comes. Consider the following points below to clear your confusion.
- PAYING CASH IS SIMPLE:
Buying a car on cash is actually simple because firstly you don’t have to worry about the burden of monthly payments and interest. If you want to change your car, go for cash on cars and buy a new car from the cash you got by selling an old car, and you’re ready to go. But it has a disadvantage too i.e You would have to take out the money from your pocket altogether and also you miss a chance to build a positive credit line.
- No chance to get heavy discounts:
Though there are many financing offers in the market that would convince the customer to buy a car on finance, but people usually forget that these offers come with heavy costs. But there is always an option, right? Negotiation works in some cases and could prove to be really very beneficial.
Often financing takes a lot of time because there are many financing options in the market and choosing which one to go for is a difficult task. And it is not only limited to choosing which method to go for, but financing paperwork also consumes time. But it works well if you find the correct financing option.
- Financing a car means you pay more than it’s worth:
When you finance a car it means you pay more than it’s worth because as you drive a car it certainly decreases its value. And car manufacturers keep on introducing new cars as the time pass, which could be better than the car you bought at a particular price. And there is no option of an increase in the value of the car, the only thing which is going to happen is that it will decrease.
Everything depends on your mindset and the situation you’re buying a car in. If you don’t want to have the burden of monthly payments and interest, go for buying a car on cash. If you can’t take out the money altogether and want to build credit go for financing it.