You have probably driven past that used car lot on a daily basis, and there has been a car there, that has caught your eye and if you had the money, you would buy it. However, in the current economic climate, having the money to just walk into a dealership and put the money down on the counter is a difficult proposition, and many of us are unable to do this. Thankfully, there are other options rather than paying cash in a lump sum, and it comes in the form of car finance. Many used-car dealerships offer their own financial terms and conditions and sometimes, this is the best deal that you can find.
However, it doesn’t make sense to accept the first financing offer that comes along, so you really should shop around with other lenders to see if they offer more favourable terms, and a lower interest rate on the payments that you have to make. Even a small percentage point can be the difference between being able to afford something quite easily, and putting yourself into financial difficulties. Many people say that it’s best to save up for what you want and then just pay for it in full. However, paying for your new used-car by finance, offers up a number of benefits and we will look at just some of them here today.
- A better vehicle – If you decide to use finance after you call into your local Canberra used-car dealer, then you will understand that because you’re not putting down the lump sum for the car, then there are more options open to you when it comes to choosing the vehicle of your dreams. Initially, they will want an affordable deposit like 10% of the full purchase price and so this allows you to look at more expensive cars, that you wouldn’t have otherwise looked at in the first place.
- Easier payments – Due to the fact that you’ve chosen to pay for your car through finance, you get to spread your payments out over a longer period of time. Many used-car dealers will offer you favourable terms and conditions that allow you to pay for the car over a long period such as 5 to 6 years. This means that your monthly payments will be quite small and so will be easily affordable. This takes the pressure off you in regards to your monthly outgoings and you still get to drive the car of your dreams.
- Improved credit score – When you sign up to a financial agreement and start to make your regular monthly payments and you stick to them, then this will result in a positive credit score for you. This gives you more buying power because companies know that they can trust you to pay back any money that you borrow.
It isn’t always best to make the full cash payment, as the above benefits show, and for some people, taking the financing option where payments are spread out over a longer period of time, is the better option. It’s up to you to decide which one is better for you and your family.