Trust Your Dealer MISSISSAUGA : (888) 902-1852
LONDON : (888) 903-4526
Filed under: Blog

Buying a car outright or financing

by Paul on Jun 7th, 2011

Tags
  • No Tags
 Share Comments (0)

If you are considering buying a car you may have the choice of buying it outright or using finance. Of course it may be that you can currently only afford to finance in which case is it worth saving up to buy outright if you can.

Financing works best where you have a good income but very little ready money, ideally your income should be secure as well; it will often be the case that you need a car or another vehicle in an emergency, perhaps for work and perhaps where your old vehicle is no longer usable.

If you have a good credit rating then financing may be a good option, you could also consider other lines of credit though like loans and credit cards, these may not be secured on any property either so lower risk for you. With financing on cars that is secured on the car you have the risk that you will lose the car if you can’t keep up repayments, even if you have put some cash down and made a lot of the repayments.

Buying outright is great but risky in its own way, with a financed car if you can’t keep up repayments then you lose the car but you may choose to do this if you decide that the car wasn’t worth what you thought it was and would rather get out of the agreement. If you buy a car outright you are stuck with it, you may be able to sell it but you may find that if you valued it at more than it was really worth and were ripped off then you can’t sell it for anywhere near what you paid.

Related Articles
  • Getting a car loan when you have bad credit Bad credit ratings affect you in many ways but of course most of all when you need money for a big investment such as a car. Your choices of funding are of course limited but
  • Get a great deal by trading in your vehicle Car dealerships add a lot on to cars for the fact they offer warranties and checks and may be able to offer much more than private sellers. This does mean though that they ma
  • Why new cars are such poor value If new cars weren’t bought of course there would be no used cars so someone has to buy them, why people do choose to buy new cars is often not clear though. For many a
  • Financing a used car A car used or new is a big investment and you may want to use finance at least in part to pay for it. Of course the less finance you use the better, putting some cash down wi
  • Why You Should Buy Used Cars Part ElevenThere is another point to consider here and that's investment. Because new cars lose so much of their value when they become used, that then means that you are bound to lo
No comments currently exist for this post.

Why don't you make one?

Get a GravatarLeave a Reply

Name: « Required

Email Address: « Required

Website URL: « Optional
  • AutoPrice Canada offers a simple and transparent car finance process. Whether you have good credit or bad credit for your used car loan, we can help. Start by filling out our Online Credit Application and in just a few easy steps, you could be on your way to driving your new car.

    Read More


    		•  



    • Autoprice TV

    Loading...

    Latest Article
  • Follow Us!
    Weekly Specials
    		•

    Our Brands

    Our Brands

    Pages

    Hours

    • Sunday Closed
    • Monday 9:00 am - 9:00 pm
    • Tuesday 9:00 am - 9:00 pm
    • Wednesday 9:00 am - 9:00 pm
    • Thursday 9:00 am - 9:00 pm
    • Friday 9:00 am - 7:00 pm
    • Saturday 9:00 am - 6:00 pm

    Social Site

    Subscribe to YouTube

    Contact Us

    • AutoPrice London Ontario
      980 Wharncliffe Rd S
      London, ON N6L 1K3, Canada
    • (888) 903-4526
    • AutoPrice Canada
      1630 Matheson Blvd.
      Mississauga, ON L4W 1Y4, Canada
    • (888) 902-1852