Is It Better to Buy a Car in Cash, or Finance It?

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If you're saving up for your next vehicle--whether your savings goal is $2,000 or $20,000--you may be wondering what the best way to use that money might be.

If you ask some people, they'll tell you to use your whole savings to buy a car outright, because all debt is bad debt.

And for some people, that's true--and there's nothing inherently wrong about that statement.


The financing team at Audi State College can help you use your money wisely, whether that is financing a car with a hefty downpayment, leasing a car by paying out of a specific account, or it's using a big cash payment.


Audi Financial: Getting Started


Let's compare some pros and cons:

Buy a Car in Cash

  • PRO: You have 0 debt tied to your name; it won't affect your credit score at all (this is a pro if you already have good credit); you'll never have to worry about monthly payments; no interest; you have full ownership of the vehicle right away.
  • CON: You're limited to just what you can afford right now.

Finance a Car--Pay Down Thousands

  • PRO: Be able to pay for 50% or more of a vehicle, leaving only a few thousand dollars needing to be financed; use affordable, small monthly payments to build a positive history; build your credit score; get a better car that you'd be able to afford with your lump sum.
  • CON: You will have a loan tied to your name until it is paid off--and that is debt.

Which of these options sounds the best to you?

You may come away from this blog knowing exactly what to do--or, maybe, you're still undecided.

Either way, we encourage you to get in contact with us so we can help you get started.

Categories: Finance


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