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.

Good and Bad

Every decision has positive and negative aspects to consider. Try making your own list as well.

Pros

  • afford a better quality car
  • build or keep credit
  • opens more locations to purchase a car

Cons

  • 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!

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