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.
Good and Bad
Every decision has positive and negative aspects to consider. Try making your own list as well.
- afford a better quality car
- build or keep credit
- opens more locations to purchase a car
- monthly payment
- can hurt credit if not paid on time
- may change the insurance coverage required
Once you make the best informed decision for you, it’s on to the fun part – car shopping!