The Advantages of Car Finance
Cars are one of the biggest expenses in most of our lives. When it comes time to getting your first car or replacing something you already own, there are tons of different options available including buying new, buying used or leasing. If you decide that you want own the car then things become a little clearer. If you only have a little bit of cash and don’t want to end up with a clunker, you may want to consider financing your car for several reasons.
First, while it’s nice to own a car free and clear, it’s not a good feeling if that investment ends up costing you much more in the long run due to constant vehicle repairs, lost time at work and inconvenience. Financing a car allows you to get a much newer and nicer car than using available cash, which might be much better served staying in your savings or retirement funds account.
Even if your credit isn’t great, most car places are able to find you a vehicle loan for less than a standard bank loan and you don’t have to worry about rising interest rates or surprising APR jumps. Car loans can be spread out over a long period of time (as much as 5 years) and have a fixed APR so it’s easier to make payments and understand the full commitment of your purchase.
In addition, making on time payments with a car loan can significantly help your credit rating. It also allows you to start a financial relationship with a bank which may help with other large purchases in the future such as a home.
There are also many online services such as 123 Cars Car Finance that facilitate these types of transactions by finding the best rates and processing applications quickly, even getting approvals in an hour or less.
In the end, we all want to be able to drive something reliable, that fits with our sensibilities and that makes us happy and if you aren’t flush with extra cash lying round, vehicle financing may make sense for you.