Is It Better to Finance or Pay Cash for Car?
Buying a car may seem simple when you were a kid but when you're actually taking in the terms, conditions, and used vehicle for sale options that the salesman is throwing at you, you may start to get overwhelmed. Not everyone is able to afford a vehicle straight cash, and frankly, not everyone who can afford it actually does pay upfront.
There are also those clients who choose to pay for their chosen vehicle via finance institutions. Their reasons are usually the same – because they can't immediately pay for the wholesome amount of their chosen vehicle.
However, is paying cash for a second-hand car really a better idea than paying via financial institutions? Let's go ahead and compare the differences between the two payment methods so you can find the best deal for yourself before driving home the model from Ford Philippines or any other car manufactures.
Why you should Pay Cash?
Smooth and simple process
Once you find the car you like, you just go ahead and tell that to the salesman. You'll most likely proceed to talks that concern the insurance, the registration and so on.
It may sound like a total time-consumer but this actually as easy as the process gets. No need for complex application forms, credit checks and worrying about adjusting your budget for the next 2 to 5 years. Don't forget to check for legalities as well to make your Ford Fiesta purchase safe.
When you pay for the car upfront, you may have to worry about your budget until the next payday or so. If you take a look at it, however, you are actually saving a substantially bigger amount compared to paying via financial institutions.
Why You Shouldn't Pay by Cash
Limited by your budget
With all the choices for the pre-owned Ford Fiesta for sale out there how will you ever find the perfect vehicle? Simple, it depends on your cash at hand. One downside of paying cash for a car is that your choices are only limited to what you can afford. Let's face it, some brands are way too pricey over the other.
You lose a big amount of cash
Whether you've been saving up for it or it was a really strong urge to buy a car, the fact is that you just spent your cash on something that is insanely expensive. If you're not really the financially-free type of person then that big spend may throw you off of your budget for a few months.
Why You Should Seek Financial Help
The dealership is your menu
With flexible payment terms, you can basically choose from the array of vehicles available in the dealership. This lets you focus on the model and make that you really like instead of just going for one model because “it was all you could afford at the moment”.
Keep your Cash Stashed
Rather than diverting all the money you've saved into one big spend, you can just pay the car loan monthly. This will let you enjoy the affordable payment for the Ford Fiesta 2012 you like without stressing you out when you need money for emergency purposes.
Why you Shouldn't Seek Financial Help
Overall an expensive buy
It's not a surprise that flexible car loans are more costly than paying upfront. However, you may find it wasteful once you realize that you're paying a way more expensive price rather than via cash purchase.
You're risking your car
Once you agree to a car loan, you are also agreeing to their terms. These are usually the conditions that concern the vehicle if you are unable to comply with the scheduled payments. In short, the company may repossess your vehicle.
In the end, it all depends on your financial capability. If you think you have saved enough for the car you like and have extra money to spare for emergencies, then go ahead. If not, you may want to consider a car loan instead.
When it comes to affordable, legal and reliable deals, make sure to browse at Philkotse.com portal. You'll find a deal that is suited for you and your needs!