Financing A Car Instead Of Paying Cash
Added January 19, 2009 by ThinkGlink.com StaffSummary: Financing a car may be a better option for some people than paying cash. Financing your car through the dealer, allows you to use the cash for other purposes. If you finance instead of paying cash there are several things to get in writing including the prices of the vehicle, the finance charge and how much interest you will pay per year.
Q. Should I finance my car through the dealer?
A. You may find it advantageous to finance your car. Many car buyers prefer taking out loans to paying cash for any of the following reasons:
You may need your cash for other purposes, such as paying for other products or services, maintaining a better cash flow, or building a cash cushion; for such things as emergencies or college tuition.
You may be able to buy a more expensive car by using financing. Under some circumstances, if you finance a car that develops serious problems, you may not have to continue making payments.Some people would rather have to make monthly payments than use their own money because they would be lax in paying themselves back.
If you decide to finance, you will pay less to begin with, but the total price will increase due to interest and other costs. When financing a car through the dealer, make sure to get these things in writing:
The price of the vehicle
The finance charge
The APR - how much interest will you pay per year? This should be expressed as a percentage.
The number of payments
How much each payment will be
The total price of the deal, including interest and finance charges.
Jan. 19, 2009.
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