3 Benefits to Financing a Car
For most of the people out there, a car is the equivalent of freedom. Being able to go wherever you want or need to without having to depend on friends, family, plane schedules or delayed trains can be an amazing thing for individuals and entrepreneurs as well. Whether it is for leisure or out of necessity, a car has become more than a desire for the majority of people. Like it or not though, cars have to be changed every once in a while and not just because they don’t look beautiful any longer, but also because after a certain “age” they become actually dangerous to be driven (especially on longer distances).
Although some of the people out there would argue that a new car is better to be bought in cash, the truth is that, especially under certain circumstances, financing a car can actually be more advantageous. You might find that you actually need a truck for leisure or business purposes. It’s possible to get truck finance, ensuring that you can get back on the road as soon as possible. Read on and find out more about the 3 most important benefits to obtaining finance for your car instead of paying it all in cash right away.
You Can Get a Better Car
Buying a new car means that you will most likely have to leave a hole in your budget and that you may not even be able to afford buying what you actually want. Even more, if you want to buy a second-hand car in cash, you may feel that you are saving important sums of money but the truth is that you are doing the exact opposite. Used cars are not advantageous in the long-term because it is very likely that you will need to repair them sooner, rather than later. If you do the math and calculate how much you pay on repairs and replacements only, you will most probably come to the conclusion that a new car would have been better to begin with.
There is No Risk of Losing Your Home
Financing your car with an unsecured loan (or with a loan secured just on the car itself) means that there is absolutely no risk of losing your home in case you find yourself unable to make your monthly payments in the future. If you add this to the fact that a car loan is always easier to get than a bank loan, you can actually start re-considering your opinion on car financing if you used to think that buying in cash is better.
You Get to Build Credit
It seems close to impossible nowadays to go through life without having to call for the help of a financial institution at least once, for a loan (even if comes just in the form of a credit card). Unfortunately though, everybody’s financial activity is closely monitored by the credit bureaus. Every financial move you make, from buying something on credit card and not paying it in full at the end of the month, to being late with your bills or rent will make a difference in your credit score.
Since you need your credit score for almost any kind of loan out there, you will definitely want to build it up. Taking a car loan can add a lot to that score if you make the payments in time and it can definitely increase your financial credibility in front of the banks and mortgage companies.
Financing a car or truck can be a great move for your personal life, for your family or for your business. Please carefully consider the purchase price of your car or truck and ensure that you are able to afford the payments long term.
Have you ever bought a car on finance? Did you have a good experience?