Car Financing- Pros and Cons

For people who are unable to buy a new car through a prepayment always go for auto loans or car financing. In this way they are able to create a new car of their own choice to drive and to pay in installments. But as each transaction, there are advantages and disadvantages. This article will help to alleviate the potential buyers about the pros and cons of car financing.

Pros-

By spending a small amount, the buyer is capable of a brand new shiny car of your choice to drive.

- With a good credit history you low interest rates on the monthly installments. This saves you more money

- If the car comes from car financing you get to drive your car under warranty for a longer period. This ensures safe driving and the feeling of safety

- Because the car is brand new so you do not have much to spend on maintenance. A new car does not need long hours in the garage when the parts are new and working at optimal performance.

- A portion of the financing clauses your car every three years. That means you never an old car to drive and would remain the center of attraction during your life.

- By your negotiation skills and a good credit history to a backup, the high chance that you to a very good deal. Through this way the costs can be significantly reduced and the whole image of an expensive deal will go down the drain.

Cons

 Technically you never owned a car until the financing is completed.The funding is a process of almost five years and this in turn can become a burden for some. This is one of the biggest disadvantages of car financing.

- The condition of the car should be provided to ensure a good return in case you sell the car. In most of the auto financing is not allowed to sell the car. This means that the car can never be your ability until all installments and you can not increase the bank some money by selling the car.

- Another disadvantage is that you pay a monthly advance for years.Non-payment of the term can lead to dire results and sometimes the car is removed. This monthly payment can also affect the monthly budget at the time of emergency.

- You have a cap on the maximum number of miles to drive. This leads to confusion among drivers and company car sometimes is just a trophy car that the owner is on special occasions.

- The car can not be disposed of on your own free will. Prior authorization is required from the leasing company.

- If you have to go out of the country the order will not be canceled.Either pay a fine or expensive to keep on paying the monthly installment

- The financing can be very expensive if the credit score is not perfect.

These are just some of the pros and cons of car financing. The final decision is yours. Whether buying or skipping is a matter of rational decision.