Car Loans versus Cash Purchase
Samantha R. on 2022-12-06
Car buying can be a stressful time for most people. Dozens of manufacturers offering dozens of models, with numerous trim levels and you are supposed to find a vehicle that you are willing to spend the next couple years with.
The process is not always a pleasurable experience and generally not an easy one. I can speak from experience. After your vehicle is found, your decision does not always end there.
A monthly car loan has become a normal experience these days; in fact it is the norm. But before you make any decisions you should ask yourself one question? Should I purchase it outright or finance it? Sure, having the capital available to make such a purchase sounds great but for most people an outright purchase is not an option.
Financing a car
First, let’s breakdown what goes into financing an automobile. You first have to fill out an application with all the particulars in order to get you approved for a car.
Basic requirements in the application are as follows: Your name, address, email and telephone number, date of birth. If you rent or own a home, your employment status, your monthly income, and if you have had your job for over three month. These are the basic requirements for getting a car loan. Once the dealership has these they can see what budget your pre-approved for, and what car you can get within your budget. Interest rates are based on your credit score and many other factors related to your financial status.
Cash purchase of a car
Same as financing that once you decide on what you want to purchase. You fill out an application with all the same particulars. Your name, address, email and telephone number, date of birth. , except they are not interested in your financial status. Once you make your payment, you are on your way.