There are many reasons that people choose to buy their cars through car financing. Whether you need to finance the purchase of your car because you don’t have enough cash to buy it outright, or whether you have a strategic financial plan that only allows you to spend a certain amount of money each month towards your car, there are some very sound reasons for doing car financing. Here are some of the reasons that you may want to consider car financing:
It Helps You Keep Your Savings
Whether you have a hefty savings account or are just trying to pay off your current bills with whatever left-over money you have each month, buying a car with car financing can help you preserve whatever nest egg you may have (or hope to have). By using a car financing option, you’ll pay small monthly payments towards the purchase of your car, eliminating the need to pay one huge bill at once, which may deplete your savings altogether.
After all, everyone should strive to have a little safety net savings to tide them over in the event of an emergency. Buying a car should never come before having that safety net.
You May Earn More Money by Keeping Your Money
Even if you have a huge sum of money that you can put towards the purchase of your car, it may be wise to only take a portion of that money to use as a down payment and keep the rest in a high interest savings account. The high interest savings account, such as a CD, will help you earn a predictable amount of interest on the principle amount of money that you have.
The trick to earning money through interest is to ensure that the savings account that you find has a higher interest rate than the loan interest rate amount that you will be pay for the purchasing of the car.
Even if there is a one point difference, you will come out ahead if you are able to keep your money in the high interest savings account and get financing for the car purchase.
There are many ways to save money in the long run through car financing. Our dealers and car financing experts are happy to help you find methods to improve your savings and get behind the wheel of a car that you can afford for the long-term. Contact us today for more information about how we can help you with your car financing.