Should You Finance a Car?

Wondering whether you should finance a car? That answer is going to be different for each individual. In order to find out what's best for you, let's look at some pros and cons, reasons for needing a loan and your current situation.

Assess your reasons for financing. Is it a want or need? Do you have money saved up for a cheaper car or for a down payment? Do you need a car immediately or can it wait?

Take a good look at your finances, job and credit. These all need to be in good standing to be able to get approved for a loan, get lower interest rates and make regular payments.

<strong>Good and Bad</strong>
Every decision has positive and negative aspects to consider. Try making your own list as well.

Pros
<ul>
<li>afford a better quality car</li>
<li>build or keep credit</li>
<li>opens more locations to purchase a car</li>
</ul>

Cons
<ul>
<li>monthly payment</li>
<li>can hurt credit if not paid on time</li>
<li>may change the insurance coverage required</li>
</ul>

Once you make the best informed decision for you, it's on to the fun part – car shopping!