Should You Pay Cash For A Car If You Can?

On the surface it may look like a very good idea to pay cash when you buy a car, simply write a check and never deal with car payments in the future. Sounds good? Paying cash for a pre-owned Chevy in Romeoville may not always be the best approach, even if you can.

Cash vs. financing:

If you have yet to have a lot of experience buying cars, a little background may be in order.

When it comes to purchasing a car there are really only two ways to do it; one is to finance the purchase, which simply means you pay a little every month until the car is paid for, the other is to pay cash. When you opt to pay cash you drive off and never make any further payments.

There is a good reason to finance the purchase of your pre-owned Chevy in Romeoville; you can get a better car. If, for example, you have saved up $8,000 to buy a used car that is all the car you will get. If you use the $8,000 as a significant down payment you can open up a number of possibilities, if your credit is good you can buy a new car even.

Is cash better?

The easy answer to that question is “not always.” In general paying cash is preferable but there are situations where that is not the case. This is especially true if you can qualify for a good rate of interest, when this is the case you will actually lose very little in interest payments and your $8,000 can be dedicated to investments with a greater yield.

This simple example shows that you should think twice about how you want to pay for your pre-owned Chevy in Romeoville. Shop around for a great offer on a loan before you opt to pay cash.

When you are shopping for a pre-owned Chevy in Romeoville, don’t always think that cash is best. You can get some great financing offers when you buy your car at Hawk Chevrolet Cadillac of Joliet.

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