Have you ever been in the market for purchasing a used car? When it came down to choosing whether to buy it outright or finance it, what did you do? Many people don’t have $10,000, $15,000 or $20,000 saved up to purchase a car outright, their only option is to finance the car.
Here are some things to consider before financing a car. How is your credit rating? Many if not all banks and lenders will base their interest rate on how well your credit score and history is. The reason why some people prefer to purchase cash is because they don’t want to pay interest since their credit may not be the best there is. Although paying a car cash is a good solution, it is not a solution for everyone.
Some dealerships will finance a car to you regardless of your credit rating, possibly a slightly higher interest rate than most, but at least you’ll be able to get that car you want. One thing that should help you make your decision on financing a car is whether or not you NEED this car. If your credit is so so, but you definitely 100% need this to get to work and live your daily life, then yes financing would be the best choice for you.