Buying a Vehicle in Cash vs. Financing

One important decision that anyone who is looking to buy a vehicle must ponder is whether they want to buy the vehicle outright or do they want to make payments over time on a loan. Both have their advantages. The following is a small look at buying a vehicle versus financing a vehicle.

Buying a vehicle in cash means you are able to get the transaction done in one fell swoop. It is simply buying the vehicle straight up and paying the full price. The good thing here is that the vehicle is paid for. The thing is that if the vehicle is coming from a used car lot, you are buying it as-is. If there are any problems with the car then the problem is on you. If it is a reputable dealer then there should be minimal problems, but pre-owned cars always require more maintenance than brand-new ones.

Financing requires a down payment then a set monthly payment. This allows for the person to pay a fraction up front and pay payments until the car is paid off. This is good, because it allows you to afford a more expensive new vehicle. The only bad thing here is that there is added charges and interests and it will end up costing more in the long run as opposed to buying it straight out.
Categories: Finance

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