So you’ve been saving up for a new vehicle, and you’ve got enough in your bank account to cover the purchase of that next set of wheels. But before you strike a deal, it’s a good idea to think through whether paying cash upfront is really the best strategy. Many consumers find that opting for car financing through their local Ford dealer can be advantageous.
1. It Spreads Out the Expense
A vehicle is a significant investment, and paying for it upfront may require a large cash outlay. Given that you’ll probably be driving the vehicle for years, there’s nothing wrong with dividing the amount you owe for the car into a series of more manageable payments over time. That’s what financing a vehicle does.
2. It Preserves Cash
If you opt to finance a vehicle, you won’t have to make a large upfront payment, and that means you’ll be able to keep more cash in your checking account. Keeping cash on hand is never a bad idea. It ensures you’ve got money available to cover any maintenance expenses that crop up with your vehicle, and it means you’ll be able to easily cover other expenses in your life as well.
You might even consider putting some of that cash in a savings account or a CD where it’s earning interest. Or, you could invest that money in stocks or bonds so that it keeps growing. Having cash on hand gives you the flexibility to make a host of smart financial decisions that can position you well long-term.
3. It May Offer You a Competitive Rate
Some consumers wrongly assume that financing a vehicle will subject them to a high interest rate. That is not necessarily the case. Our dealership has relationships with dozens of lenders. If you opt to finance your vehicle with us, we’ll reach out to our lending network and solicit the best financing offers for you. We can even help you evaluate the offers and determine the best one for your lifestyle and budget.
4. It Can Enhance Your Credit History
Financing your next vehicle, and paying off the vehicle on time and responsibly, is a terrific way of building a positive credit history. Once you’ve demonstrated that you can stick to a payment plan, lenders will be more likely to work with you in the future. If you’re a first-time borrower, or if you’re working to improve your credit record, financing a vehicle and paying it off successfully is a smart step.
Even if you can afford to pay cash for a vehicle, it’s still wise to consider financing. The next time you’re in the market for a new car or truck, call John Hinderer Ford.
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