Is Financing a Car a Good Idea?
Deciding whether financing a car is the right move for you? The debate over financing versus purchasing a vehicle outright is an ongoing one among consumers. When it comes to financing a vehicle, your options will be largely dependent on your personal credit and financial situation. However, there is a wide range of loans and interest rates available to individuals with varying credit, from good to bad to non-existent. While dropping your hard-earned cash on a new car outright can lift the burden of worrying about repayment, financing a vehicle allows you to pay much less upfront and avoid getting your savings tied up in an investment vehicle.
Here at BC Drive, we’ll pair you up with a dedicated finance professional who will work with you to get you approved for the best financing loans and interest rates possible. We’ll find options that match your budget, allowing you to drive away in the car of your dreams. Read on to learn more about financing a vehicle and why it could be the best option for you!
Reasons to Finance
- Lower Costs Upfront. Why drop all your cash upfront when you can finance a vehicle with smaller incremental payments? The down payment, monthly payments, and interest rates will depend on your financial situation, and how high or low your credit score is. Down payments are often relatively low and typically range from 10-20% of the total cost of the vehicle. In some cases, you can even secure 0% down payment terms, especially if you've been good with your credit. Just be aware that 0% means higher overall monthly financing costs.
- Low-Interest Rates and Terms. No matter your credit, it's unlikely that you'll be unable to find low-interest rates or relatively reasonable terms. This is because banks view financing as low risk, as they can easily repossess the vehicle in the event of non-payment.
- Builds Your Credit. Whether your credit rating is poor, or circumstances have made it virtually non-existent, financing a vehicle is a great way to show how you can consistently keep up with payments, which can help build your credit over time.
- Allows You to Keep Your Savings. Rather than draining your savings by paying upfront for a new vehicle, why not keep your hard-saved money for a rainy day? Having your savings tied up in an auto investment may seem smart, but your money could potentially be better spent elsewhere. Perhaps you want to be cautious and keep your funds as a nest egg in case of an unforeseen emergency, or prefer to invest it into something that’s likely to gain more equity with time. Either way, with so many flexible financing options available, there’s no reason to empty your bank account for a car.
- Get the Car You’ve Always Wanted. Deciding to purchase a car upfront limits your choices, mostly because you are tied to a very specific budget. And while less than ideal credit might make finding the car of your dreams somewhat challenging, financing will significantly increase your chances of getting the high-quality vehicle you were hoping for. Don’t restrict yourself to a small budget by paying cash! Here at BC Drive, our finance professionals will begin the financing process by identifying your vehicle wants and needs before locating a lender that matches your budget.
Get Approved Today with BC Drive
When you finance a vehicle with BC Drive, our finance professionals will work with you every step of the way to guide you through the process. We work with BC’s most affordable and flexible lenders that offer competitive rates to individuals with types of credit status.
Ready to find the car of your dreams at an affordable cost? Let’s get you set up today! Submit your application, and you’ll be assigned a personal finance professional to start the process. Have more questions about financing a vehicle? Don’t hesitate to give us a call or send us a message anytime!