My Car Quest

December 11, 2019

Several Ways to Finance Your New Vehicle

Finding a vehicle you want is the easy part. The hard part is figuring out the best way to pay for it. If you’re like many of us you might want to look at several financing options.

The thing is that there are so many options available, and some could make a huge difference to how much you end up paying. Some people will also assume that some options are better or worse than others when that may not be the case. Let’s take a look at a few ways that you can finance your new vehicle, and look at some of the pros and cons of each option.

Pay Cash

If you’re lucky enough to be able to pay for it with cash, good for you, as long as you believe that the cash could not have resulted in a higher return invested in something like the stock market or real estate.

When you use all cash you do not need to worry about financing costs and monthly payments but you also do not have the use of the cash in case you need it.

Leasing

While a lot of people might automatically assume that buying a vehicle is always the better option, but that’s not true for everyone and for every car. For instance, if you want to drive a brand new vehicle every 2-3 years, then leasing could be a good option. You won’t have to deal with the depreciation and will usually be able to afford a much better car than if you bought it outright.

However, you won’t have the same liberty with a leased vehicle and will have to be careful to not go over the mile limit if you want to avoid penalties. Also, be sure that the vehicle is brought back in perfect condition, or you might have to pay extra.

Get a Loan through the Dealer

You also have the option of getting a loan through the dealer, but this is not always the best option. Dealers often work as middlemen and make a profit from the loan. They might also jack up your rates citing credit score issues. People will often feel pressured to deal with the dealers but there may be better options.

Get a Personal Loan

Another option you can consider is getting a personal loan. It’s always a better option to look for financing yourself first before you accept anything from a dealer. Nowadays, there are tons of online and offline lenders you can choose from, and you can get multiple quotes and find the best one for you. Some may be more favorable to your situation or your credit history. If you’re looking for some of the best lenders in the country for personal loans, you can find them here.

Once you’ve gotten a few quotes, you can decide which ones are the best for you. You’ll also have more bargaining power when you negotiate with your dealer.

Car Subscription Services

An alternative to owning or leasing a vehicle is the car subscription service, which is where a customer pays a monthly fee for the right to use one or more automobiles. Insurance and maintenance are part of the subscription fee. Some subscriptions allow the subscriber to switch between different vehicles during their subscription period.

The customer does not worry about depreciation because the ownership of the vehicle remains with the subscription service.

Summary

Finding financing for your new vehicle is important and doesn’t have to be difficult but it can be complicated. If you think you’re eligible for credit, make sure that you look at all the options at your disposal and choose the one that will be the best depending on your budget, terms, and final total cost.

Let us know what you think in the Comments.

 

 

Piggy Bank

Summary
Several Ways to Finance Your New Vehicle
Article Name
Several Ways to Finance Your New Vehicle
Description
Finding a vehicle you want is the easy part. The hard part is trying to figure out the best way to pay for it.

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