There are few transactions in your life (aside perhaps from the purchase of a home) which will cost as much as the purchase of a vehicle. Cars, trucks, bikes and other modes of motorized transport are generally the second most expensive purchase in the life of the average consumer. It is because of this fact that few people are ever in the position to pay cash for their vehicles.
Almost everyone uses some form of credit for their vehicle purchase. Like it or not, this is nothing more than a fact of modern life. Most people use car loans in order to afford the car that they want. This can be a perfectly sensible and relatively safe way to purchase a vehicle. Indeed there are several reasons why it would be beneficial to purchase a car using a car loan rather than not use a car loan.
Most people have some form of savings. Some have maybe $1000 dollars or so, whilst other people’s savings run into the tens of thousands or even hundreds of thousands of dollars. The fact is that these savings, whilst they may be more than enough to afford you a new car outright, are not saved for the purpose of a new car. Most people save for their retirement or in case of an emergency. Tempting as it may be to pay cash for a new car (assuming that you have the money ready) it does not make all that much sense. Whilst it is …Continue reading