Buying a new car (or new to you) is an exciting process there is no doubt about that. With that excitement also comes confusion about how to pay for it. You will be able to finance your car through the dealership, or in most cases you can go through a bank of your choice. No matter the term length, acquiring auto financing will build your credit score.
Buying a new car (or new to you) is an exciting process there is no doubt about that. With that excitement also comes confusion about how to pay for it. If you’re in the position to purchase outright, then it would be wise to do so, but for most of us we will need to look into car loan options. Luckily there a tons of choices out there in regards to auto financing. You will be able to finance your car through the dealership, or in most cases you can go through a bank of your choice. The terms on your loan will vary so it is best to do some research to find the best option for you.
So why is it a good idea to opt for auto financing when looking for your next vehicle. Here are some of the top reasons& advice on why financing is a great idea:
- Future Savings. You’ll be able to buy a better car than you otherwise could. Also, the total cost of ownership when financing a newer car is much lower than the money you’ll likely spend on repairs for an older vehicle.
- Value Offerings. When you finance your new or used vehicle, the dealership will likely throw in some added perks. These can included a full tank of gas, a free year of service, or fresh oil changes.
- Auto Financing will build your Credit. No matter the term length, acquiring auto financing will build your credit score. Even if you have poor credit you’ll still be able to find financing options. Just make sure to be on time with your payments!
- Budget Savings. Find out how much you can spend and how much you can afford down the line. Most dealerships will allow car loans to be paid off sooner than the term length and will not penalize you if you are more aggressive in paying off the loan.
- When Financing pay Cash for “Extras”. Dealerships will likely try and roll together all of the extra fees into your auto financing. Ask what these extras are and ask to pay for them in cash. This will ensure that you will not drive away “upside-down” on your vehicle.
Don’t fret, the car buying experience should be fun (especially if it is your first car). Enjoy the process, but keep in mind that financing your car is most likely the best option for you.