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How to use car finance as a positive financially


No matter what type of car you decide to purchase, be it used or new, you will find that buying a car is going to be expensive. Therefore, it is important to decide before you make the purchase whether or not you will pay with cash, or if you will take out a finance agreement.

Although you may feel a little nervous about agreeing to a car finance deal for the simple reason that it will put you in debt, it might ultimately be a better option than buying a car outright with whatever cash you may have saved up.

Here, then, are some of the ways in which you can use car finance as a positive, financially.

#1. Purchase a better-valued car

Did you know that according to recent statistics, about 90% of new cars sold at dealerships were purchased on finance, compared to less than 60% in 2010?

A lot of people choosing to buy a car in such a way these days are likely to do so due to a simple inability to afford the vehicle they desire with whatever cash they already have access to.

By taking out a car finance loan, you will find that you are able to afford a better or higher-specification model of vehicle than might have otherwise been the case. And don’t forget that thanks to firms like Car Finance Genie, even bad credit doesn’t mean you can’t take out car finance.

Instead, you will be able to buy a better model of car that is safe for you and your family to drive. All that you must do is pay it off over the next few years. So, be sure to pick a car brand and model that are well-matched to your budget, while also meeting your practical requirements, and even getting you a little bit excited.

#2. Spread the overall cost

 When you purchase a car with cash, you need to have the full amount with you in order to call the car your own. However, on a car finance agreement, you don’t need to have the full amount in your bank account yet. Instead, you can pay off your car loan in regular instalments over the next few months or years. That will take some financial pressure off you, and help give you access to a broader range of vehicles.

#3. Build up your credit score

By taking out a loan on a car, and successfully paying it off month by month, you will find that this will help to improve your credit score. The more successfully and consistently you pay your bills, the higher your credit score is likely to be over time. This, in turn, is likely to bolster your chances of obtaining credit in the future whenever you need or desire it.

It’s useful to take out loans if you can pay them back in full. So, it may be worth taking out a car finance loan to reap the benefits for your credit score.

#4. Use it to switch to another vehicle more easily in the future

When you own a car, you may find it extremely hard to sell in the future when it starts to fall into disrepair. If you cannot sell it, you may end up having to spend even more money to arrange repairs or get new parts installed into the vehicle.

However, if you do not fully own the car and take out a car finance loan, you will likely find it easier at a later stage to replace the vehicle with a newer model, or perhaps one that does not break down as easily.

Are you ready to take out a great car finance deal?

If you have decided that the car finance route is the right one for you as someone in need of a new set of wheels, it couldn’t be simpler to start the process of arranging the perfect deal. Apply now for your free no-obligation quote through Car Finance Genie, to discover what could be possible.

Photo by Dhiva Krishna on Unsplash

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