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Should I Buy A Car With Cash In Ancaster?

Should I Buy A Car With Cash In Ancaster?

If you’re planning a new car purchase, should you buy with cash or use an auto loan? There are pros and cons to each but the answer isn’t as straightforward as you may initially think.


Being able to buy a car with cash is an enviable position to be in and something we would all wish to be able to do. But it isn’t as universally beneficial as it may seem.


The benefits of buying a car with cash


The main benefit of being able to buy a car with cash should be immediately obvious. You’re free and clear and the car is yours and yours alone.


No monthly payments, no interest, no having to qualify for a loan and no paperwork to contend with.


Buying with cash also helps you stick to budget. If you have a finite amount of cash, your budget is set. It is harder to overextend yourself or be tempted by shiny models or expensive upgrades.


The benefits of buying a car with an auto loan


There are also significant benefits of buying a car with an auto loan.


You won’t empty your savings. If buying a car with cash empties your savings, you may leave yourself exposed. If our experience is anything to go by, the moment you use up your cash reserves, something happens that requires cash.


You could qualify for low or 0% finance. If your new car qualifies for 0% finance, you may be financially better off keeping your money in savings to accrue interest while paying for your car at zero interest.


Auto loans also help rebuild credit. If you need to rebuild credit, paying an auto loan is one of the most effective ways to do it. You create a positive payment history over a long time, widen your credit mix and help fill out your credit report.


This can help you in all walks of life, not just auto loans. Better credit scores mean lower rates on mortgages, credit cards, personal loans and can even influence where you live!


Buying your next new car


Only you can decide whether buying with cash or with credit is a good idea. Depending on your situation, buying a car with cash may be the right thing to do or buying with credit might be better.


Either way, such a big decision requires a lot of thought and planning and we recommend spending as much time as you can doing just that.


There is no wrong answer here, only the answer that’s right for you and your situation.


Whatever you decide, our team is ready and willing to help!


We will use all our skill and experience to deliver the lowest possible Ancaster auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


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Categories: Auto Loan

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