Which is the Better Option?
The question remains, should you finance a car or pay with cash? In our opinion, cash is always the better option. The term “Cash is King” still lays true – for all transactions. But then again, everyone does not have cash readily available to make big purchases. If you have been able to save or win a large sum, its best to use it to buy a car. It is best to plan out the purchase so your expenses are not disturbed. You should have enough cash left to live within your means.
The options of the car may be limited, but at least you will be the owner. The worries of managing your monthly finances will not cause hindrance. And if the time comes when you want to sell your car for a need, you can always do that. Car is such an asset that can be liquidated easily as opposed to other investments. It becomes your asset and like all other assets, the value of the car depends on the demand. In times where everything is changing quickly, no one knows when your car’s value may increase. It can be because of the economy, a car giving a lower mileage will always be in high demand. Also read HOW TO BUY YOUR FIRST CAR
Finance is also an option
If you are unfortunate that you do not have the cash to pay upright to purchase a car, there is always financing. You being the buyer will have the option to choose a car and get into a financial agreement. This contact will hold solid for its tenure and you cannot get out of it until all payments are cleared. Keep in mind that if you are unable to make the monthly payments, there will be consequences. The financial ramifications that you will have to face can be troubling.
It is always best to ensure a steady stream of income before getting into a car financing contract. If you have a job, make sure that it is a permanent position and you have job security. If you plan to switch jobs in the near future, make sure that your incomes are not disturbed in the process. If you own a business, make sure that you have a steady standing. It is always best to keep a good amount of funds readily available for emergency purposes.
In the end, the decision is yours alone. Discuss the processes with a trusted acquaintance who has experience in financing a car or buying in cash. Their insights will give you a fair idea about the processes and laws that are attached to contracts in your area.