Paying Cash vs Financing a Used Car
So, the time has come for you to upgrade your set of wheels to something a bit newer than what you currently drive. Perhaps your jalopy has finally had it, and you were anticipating its demise by saving up for something newer. You still would like to drive a pre-owned automobile, and you have a few different vehicles in mind. You have done your research, but one question continues to show itself inside your mind while going over all of your options. Should you pay for your next vehicle with cash outright, all in one fell swoop, or should you finance it and pay for it over the course of time? Let's look at paying cash vs financing a used car a bit more in depth.
When you pay for a vehicle in cash, you are paying for the entire cost right away, essentially getting it all over with, just as you would go to the store and exchange a $10 for a bag of frozen chicken. When you finance a vehicle, you are paying some of the cost right away, then making smaller payments over time with an interest rate that is basically a small fee for being able to borrow the money for the vehicle. Which one should you do? Ultimately, it is your decision based on your current financial situation as well as what you anticipate in the future. Paying the entire cost of a vehicle right away can be good in a sense that you get it finished right away and do not have to make monthly payments, but financing can work out well for your credit score.
At Carizma Motors, we can work with you regardless of your credit history. If you are looking to get out of a bad credit situation, you can finance a new-to-you vehicle with us and make those monthly payments on time to rebuild your credit. If you have any questions on how we can make this work for you, please do not hesitate to contact us, and we will be happy to assist you.