What’s the Difference Between Buying and Financing a Car?

Couple at car dealership signing papers

Buying Vs. Financing a Car

So, you’ve decided you need a car, SUV or pickup truck and are not sure about what the differences are between buying and financing a car. Well, you’ve come to the right place as the following information will help you learn more about what the differences are between buying and financing a car. From the benefits of both to which one is right for you, you’ll find just what you’re looking for, right here.

[You May Also Like: Tips For Financing a Used Car]

Paying Cash For a Car

When you pay cash for a car, you have to have all the money upfront when purchasing it. While this is not really an option for most drivers, it is still available to you. Below, you’ll find some of the benefits of paying cash for the car, SUV or pickup truck you want to buy and drive.

  • Keeps you from overspending on a vehicle.
  • No monthly payments to deal with, you own the vehicle outright.
  • You won’t pay any interest on the vehicle because you won’t have a car loan.
  • You can sometimes get more discounts in the form of rebates if you pay in full with cash.

Financing a Car

When you finance a car, you will be taking out a loan from a provider that will pay for the vehicle for you and then have you make monthly payments until the loan is paid off in full. View some of the benefits of financing a car, below.

  • You can keep more of your money in the bank.
  • You’ll pay a smaller amount of money every month instead of paying one lump sum.
  • Financing a car can help you increase your credit score if you pay on time every month.
  • You can oftentimes find the lowest interest rates when buying a new car, SUV or pickup truck.
  • You can put down as much money down as you want to get the monthly payment you desire.

When you’re ready to begin the buying process, please let the professional staff at Jack Carter Chevrolet GMC Buick help you find the vehicle you’ve always wanted to drive. Our product experts can help determine whether buying a car is the right choice for you or if you’d benefit more from financing the vehicle you want to buy. We hope to see you soon!

[Apply for Vehicle Financing]