When you decide the time is right to purchase a new or used car, you may be wondering whether you should pay with cash or finance. If you choose to finance, you will be paying small payments until the car is paid in full. If you pay with cash, you are free from paying any interest or monthly payments. Deciding whether you should finance or pay with cash at car dealerships in Philadelphia depends on your finances and your personal situation.
Weigh Your Options
Before you make a final decision on how to pay for your purchase, it is important to consider all of your options. Oftentimes, car dealerships in Philadelphia will offer special low-interest rates or cash bonuses for buyers that have eligible credit. Sometimes, you can even take advantage of 0% financing.
If it is possible to get more for your money by investing in desirable financing terms, it is definitely something to take into consideration. This is especially true if you are in a good financial situation with adequate cash flow.
What If You Are Buying Used?
As a general rule, you automatically save money purchasing a used car because of the depreciation factor. When you pay with cash at used car dealerships, it only adds to those savings. One of the greatest advantages to paying cash for a used vehicle is that you will be able to leverage that cash for a discount during negotiations, which is also the case when you buy new.
