The common thinking is that buying a car with cash is better than financing because you won’t have to pay interest.
When you’re financing, you have to pay off the car with interest, and that means you’ll end up paying an additional amount on top of the car’s purchase price.
Is it better to finance or get a loan?
In many cases, the interest rate you can get on an auto loan will be lower than what you can get on a personal loan. That’s because the auto loan is a secured loan (the vehicle is collateral) whereas the personal loan is unsecured. However, dealership financing can be the best deal in some specific situations.
Photo in the article by “Flickr”