Buying a new car can be an exciting experience, but it can also be an expensive undertaking. When deciding to purchase a car, there are many factors to consider. The primary thing to consider is that the car you purchase must meet the demands of your lifestyle. Another important aspect of buying a car is determining how much you can afford and how you will pay for the vehicle.
When purchasing a car, you have two main options: cash or financing, whether through a bank or a dealership. The option you select will be determined largely by your financial situation. Each option has its advantages as well as disadvantages. Before deciding on your purchase, you need to weigh the pros and cons of each choice.
Saving money to buy a car can take a long time; however, it is the more straightforward option. Paying the full balance for your vehicle means you will avoid additional charges in the form of interest payments or other fees associated with processing an auto loan. Also, a one-off payment means you won’t need to worry about making monthly payments to an auto finance company. While paying cash may seem attractive, using all your savings to purchase a car means that you might not have a cushion to fall back on in case an emergency arises.
Buying a car through financing
Many consumers in Canada use financing as their preferred way of purchasing a motor vehicle. According to a report by the Financial Consumer Agency of Canada, the auto finance market grew from roughly $60 billion to $120 billion between 2007 and 2015.
Research shows that consumers generally choose to finance a car because they would not be able to purchase a vehicle otherwise. With financing, the cost of your purchase is spread out over time, making it more affordable.
When you finance a car, it can also help to build your credit score as regular, prompt payment of monthly amounts demonstrates a history of fiscal responsibility. This puts you in a better position to obtain other loans at a later date. However, before signing any paperwork, ensure that the financing option you choose offers fixed monthly payments that are affordable on your budget.
Are you planning to finance a car in Vancouver?
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We are a family-owned and operated automotive financial institution that has been offering loans based on vehicle equity to consumers in and around Metro Vancouver for the past 34 years.
Our loans have short terms, are easy to qualify for, and straightforward to repay. The loan process takes as little as 15 minutes, and a credit check is not required. Whether you have excellent or bad credit, we can help you purchase your new car. Call us to learn more about our instant car loans or apply online today.