Buying a Car with Cash or Financing: Which Is Which?

1. Buying a Car with Cash or Financing: Which Is Blossom Chevrolet 1850 North Shadeland Ave Indianapolis, Indiana 46219 (317) 357-1121

2. When one visits the official websites of a good number of dealers, and they will likely come across the term ‘auto financing.’ Such a service is now considered a staple among car dealers, and for good reason. Auto financing provides buyers a solid funding option if they don’t initially have the money on hand. In turn, they are given the opportunity to drive a car home for as little cash out as possible. On the other side, buying a car is still ever possible by handing out cold, hard cash. Not all of us are as fortunate, however. Both options now pose one question for car buyers out there: Should they buy a car with cash or take out an auto loan? When A Loan Makes Sense Car financing is a popular method, and one that is recommended even if you can actually pay for a car with cash. Much of the reasoning lies within the car’s inherent value. All cars depreciate in value over time. Let’s say you shell out a good $35,000 for the latest model. If you do so, good for you since you actually own the car and don’t need to worry about monthly payments. The thing is, your ride that’s previously worth seven digits will be worth four after a length of time. No amount of after-market modification or any other trickery on your end can change that. Financing also opens you up to a wide array of opportunities. Opting to pay 20 percent of the entire $35,000 asking price leaves you with $28,000—money that you can use for other, more practical things. That sum is good enough to put into something like the stock market or a bank, both of which give your money the opportunity to grow. It will be a win-win situation: you have your own car, and got funds stashed for when you need it most.

3. When Money Can Make the World Go 'Round Paying for a car with cash is as straightforward as paying for a book. You give the dealer the money, drive your new ride home, and be on your merry way. No need to worry about waiting to be approved for a loan, and you can use the time you saved to do more important things. Travel? Go ahead, take your family with you in that sweet, brand-new SUV. Take your loved ones with you on a road trip and visit places you wouldn’t have been able to see by simple commute. In other words, paying for a car with cash gets props for the ultimate convenience. You wouldn’t worry about monthly bills, late fees, and other payment issues with your lender. You also prevent other people from snooping into your personal credit history when you don’t really want them to. All that money you would’ve set aside every month to pay off your loan could be used for other expenses like electricity, water, and mortgages (if applicable). Both options have their merits and drawbacks. Everything falls on you, the car buyer, to decide on your own. Keep in mind that either option fits a specific type of situation perfectly, so be careful in assessing your current financial state.

4. Sources: http://www.blossomchevrolet.com/ http://jalopnik.com/when-is-it-a-better-idea-to-finance-a-car-than-pay-with-1735634448 https://personal-finance.thefuntimesguide.com/2008/06/pay_cash_buying_new_car.php