You need a new car, and it turns out you have some savings! But is it a good idea to buy your car with cash? Before you take out large amounts of money from your wallet—or your bank account—take a moment to read our advice.
We’ll help you weigh the pros and cons of auto financing vs. cash.
Buying Cash: Not as Advantageous as You Might Think
If you’re thinking about paying all your bill in one shot, it’s probably because you don’t want to have to think about it. You’re thinking that it’ll be one less monthly expense and, most importantly, that you won’t have to pay interests!
You’re not wrong about this. However, buying cash also comes with disadvantages. First, ask yourself:
- How much money do I have?
- Will I have money left if something unexpected comes up?
- Is the car I’m thinking of buying high quality?
Buying cash can seem more economical … but if you end up with an old wreck, it might cost you an arm and a leg in repairs! In contrast, auto financing allows you to get a better-quality car that will last a long time.
Fewer Limits with Financing
By financing your next new vehicle, you’ll benefit from various advantages. For instance, you’ll have money left for other necessary expenses. But above all, it allows you to get your hands on a car that you like!
Think about it: A high-quality pre-owned car rarely costs less than $10,000. By getting financing, you are much less limited in the number of choices you have. For example, if you need a used SUV or a spacious car for your family, you won’t need to make any compromises.
Finally, don’t forget that the only way to get a good credit report is by borrowing. Get a flexible plan with L’Ami Auto Crédit, in Chicoutimi, La Malbaie, Baie-Comeau, Alma and Sept-Îles.