Blog

18 Jun

The Pros and Cons of Financing a New or Used Car

If you are wondering whether or not you should finance a new or used car, you’re not alone.  The decision to finance your car is one that many people struggle with every time that they buy a new or used car.  However this doesn’t have to be the situation.  Financing a car doesn’t have to be a difficult decision if you know how to approach the issue.

If you have all the money you need to pay for a car in full and you don’t need the money for any other expenses or bills, then the odds are good that you will toss down your cash and buy a car.  Very few people are in that situation and for the vast majority of car buyers that means opting for some form of financing.

Oftentimes people fail to realize that there is a wide array of financing options available and that more than likely they can receive financing even if they have had serious credit issues.  In fact, it is even possible for those who have filed bankruptcy to apply for and get financing so that they can buy a new car.  Now that you have all this good news, let’s take a look at some of the pros and cons of financing your next new or used car.

Con Number One – You Will Have a Car Payment

There is no way around it; there is a one con when it comes to opting for car financing- you will have a car payment. This is something that most consumers will not be able to avoid, as buying a car is an expensive purchase.  This means that for most, car financing is a necessity.

Pro Number One – You Can Buy a Car

Having access to car financing means that you will be able to buy a car where otherwise you would be forced to save up all the money necessary to pay in cash.  This option would mean delaying your car purchase by years or selecting for a car that is far inferior to the car you would like.

Pro Number Two – Car Financing Will Allow You to Build and Rebuild Your Credit Score

If you have a blemished credit history or a poor credit score, then it is important that you address the issue.  One of the single best ways of doing just that is to buy a used or new car and consistently make all of your payments.  The end result of doing this is an improved credit score, and who doesn’t want that?

Pro Number Three – You Can Get the Car You Really Want!

Without financing, you could be stuck driving a car that is far less desirable and interesting than the one that you want.  However, thanks to financing, you can get behind the wheel of your dream car and do so quickly, as car dealerships have a variety of financing options available.

Get Approved Now!

Ready to apply for financing? Fill out our application form here to get started: https://www.carloanscanada.com/credit-application/