Buying a Car: Financing vs Leasing vs Cash

By Product Expert | Posted in Buying Tips, Financing, Tips and Tricks on Friday, January 13th, 2017 at 8:18 pm

Getting a new vehicle, even if it’s only new to you, is a big investment. A set of wheels adds a lot of freedom to your life, but also adds costs and comes with a price. So, when you look through your finances, you might be wondering to yourself if it’s better to spend more on a less expensive car without having to take out a loan, finance a newer or nicer car with a monthly payment plan, or lease something. Each choice has its benefits, and we’re here to help you make the call.  

Monthly Payment Estimate Button _b

Financing vs Cash When Buying a Car

Financing is the most popular option for car buyers in the US, as it allows you to make smaller monthly payments towards the purchase of a vehicle. This is a great option for those who have a steady, reliable income, but want to keep their cash free for other things. Those with a lower credit score might end up with a higher interest rate, making it very important to make all payments on time, or else end up paying way more for the car than you should.

Read More: 5 Smells that Could Indicate Car Trouble Ahead

When you buy with cash, you get the satisfaction of knowing that it’s all done at once and that you don’t owe anyone anything extra for the car. It also makes it easier to sell the car down the road because you hold the title. However, naturally, paying with cash means taking a big chunk of money out of the bank at once. Is it worth saving the stress and paying in cash? Only if you’ve got the money to spare!

Should I Lease Instead of Buying a Car?

Are you someone who enjoys having a new car every few years? Does reliability and convenience matter more to you than building equity? If the answer to these questions is yes, then you might be a great fit for a lease. When you lease a car, you get to choose something new, pay a low down-payment and then drive away with a vehicle that is yours for a set number of months. You pay the monthly payments, and at the end of the lease, return the vehicle to the dealership.

Online Car Buying Financing Barre South Burlington

Leave a Reply