Once you decide on the car you want to buy, you still have a big choice: should you finance or pay cash? Our Toyota financial center wants to help you decide with this guide:
Why Pay Cash for Your Car?
The main reason to pay cash for your car is so you can leave the dealership knowing the vehicle is completely yours. With no money to pay back, you don’t have to think about making any payments.
Why Finance Your Car?
The other option you have when buying a car is to finance the purchase. Going this route offers a lot of benefits, including:
Not needing to have a ton of money on hand
Not everybody has all of the money necessary to completely pay for a car. With financing, you don’t need it. All you have to do is put up some money for a down payment and then pay the loan off over time.
Keeping more money on hand
Even if you have enough money saved to buy a car, it may not be the wisest idea to use it if it involves draining the account. You just never know when some sort of financial issue will pop up and if that happens, you could be left in the lurch.
Improving your credit score
If your score isn’t the greatest right now, you may have a higher interest rate on your loan. However, when you pay back the money you’ve borrowed on time, this will help raise your score. Eventually, you might be able to refinance the loan to get a lower interest rate.
If you have decided which option is right for you – or perhaps you still have questions – come down to Centennial Toyota near Paradise to talk to one of our financial professionals.