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Is Buying Instead of Financing a Good Idea?

Individuals apply for auto loans because they do not have money to buy a new or used car outright. Even if you have no urgent need for a a vehicle, but you just want a car, saving to buy a car may not be the wisest decision.

There are several variables that you need to take into consideration if you intend on saving your money for the next year or so to purchase a new or used auto.

How Much Can You Afford to Save Every Month?
You may determine that based on the amount you can save every month that it would literally take you years before you can buy a new or used car outright.

Annual Price Increases of New Cars
Are saving your money to buy a new car? New car prices, increase every year. So, if you are putting away 4% of your salary for your future car purchase, and the car that you are interested in has an annual price increase of 7%, you are never going to be able to save enough money.
You can look to buy a car that is several years old. This will save you a substantial amount of money.

Finance Part of Your New or Used Car Purchase
If you are looking to buy a car instead of financing it, but you still can not afford to make a purchase, you do have options. You can save as much money as you can, and then use these funds as a down payment on your car. This will allow you to get the car you want, with financing charges that are minimal and affordable.

Saving Is Not Easy for Anybody!
The bottom line is that saving to buy a new or used car is going to be more difficult than you think. Often, unexpected issues arise, that will force you to dip into the funds that you have put aside for your new car purchase. Even worse, knowing that you have money laying around can result in your temptation getting the best of you. A good idea would be to invest the money you are saving. This way, not only will you earn a return on your invested cash, the money will not be easily accessible to you.

Interst Rates for Car Loans Are LOW!
Good and bad credit auto loan rates are at an all time low. It is likely going to be easier for you make a monthly car loan payment, than to put money aside every month. In fact, you can finance a car with a lower montly car loan payment than the amount of money you would have to save monthly.

Apply for an auto loan now!
When you apply for car financing with Premier Auto Finance, you are not obligated to accept the auto loan offer. It does not hurt to hear what we can do for you!

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