Buying A Car: ON Finance or Credit?


Buying a new car might be challenging: first, it might be the most expensive thing you buy with your house, and there are too many methods to earn it too. For a fact, you also have to calculate the running costs and other bills as well, so it will not empty out your bank account immediately. Hence, you need to make sure you select the best way to have a car that fits for your needs!

  1. Pay It Cash or Use Up Some Savings

If you do not like to be indebted, then best way to have a car might be by paying off some huge lump sum of money for it. What you need to take note of is: you have to calculate things right. You can use a car cost calculator application, so you will understand the breakdown of the bills you need to pay. Of course this will be the cheapest way, since funding all or half of it in cash will lower down the interest rates you need to pay later on. However, you have to be sure you have enough saving left just in case you have emergency situations.

  1. Pay the Other Half with A Credit Card

If you do not, then you can pay of the biggest amount you can and let the other half to be paid through credit cards. This will be a win-win solution, as it will not charge you too much yet once your register it under your credit card company, it means they are partly liable for the car. Just in case something goes wrong, you can use the credit card purchase protection and warranty, in which they will pay you some amount of money back if you retailer is gone missing after the deal. Isn’t it the best way to have a car?

  1. Take A Personal Loan

If you cannot afford it through cash, you may try out a personal loan, since it is not only best way to have a car, but also the cheapest one when you do not have enough amount of money. Obviously the interest rates will be much lower, it might even do not involve any rates. If you shop around, you will be able to compare one institution to another and see which one works better for you and your daily need.

You might obtain it from a bank, finance provider or even the society — the people who are trustworthy and trust you enough for it. The procedure of taking up the loan is relatively easy too, as it might be done face-to-face, online, or even through phone calls. In some cases, you might need to wait for a while until the lenders send the money into your bank account, yet commonly it will not take too long. However, make sure you never put your home as a guarantee. You do not want to lose your home if something goes wrong and you fail to pay it off monthly, don’t you? So which one is the best way to have a car for you: finance your own care, take the loan or pay it off through credit card?

Tags: #buying car #credit card #interest rate #personal loans