You just have to pay an appropriate downpayment and you can pay the rest of the money through easy EMI options with the course of time. The same goes with buying cars. With low interest rates and easy payment options, financing a car has been the most popular way to buy a car in recent times. Due to this, people with a strong financial background who can pay for their cars in full are also going for car finance these days. Financing your car has a lot of advantages which we will discuss in this article. Car finance not only benefits you, but also the dealer and as a result, you can expect better treatment and quality of service if you are getting your car financed.
Benefits of Buying A Car with Finance
1) Economical - Car financing is very economical in present times. Almost all the companies offer very low interest rates and a long time period in which you can easily return the money without much burden on your monthly budget. If a person buys an inexpensive car, the amount of money saved is quite less. It is interesting to know that you will be saving more money if you are buying an expensive car. Moreover, people who have trouble spending all their cash instantly do not have to do so. If you can get a low interest rate, you can hold on to your money till the time you are able to pay the loan on your car. This way, you do not have to worry about going bankrupt or short of cash. In fact, you can invest your money where you get a higher interest rate than what you are paying. This way, you will not only save money, but will also be earning it.
2) Benefits for the dealer - Most of the dealers do not make much money if you are paying in full. Dealers usually get a high commission from finance companies and therefore, they are even able to offer discounts when a customer is interested in buying a car on finance. On the other hand, the dealer is also able to earn more profits than what he would have, if you would have bought the car in cash.
3) Relationship with the dealer - A satisfied dealer is also usually willing to give you some special attention and care. You can expect a better quality of service when you buy finance cars. This is because dealers do not usually make much money and have to sell a car close to its ticket price. But the same dealer will earn a lot more if you buy on guaranteed car finance. They also give you great discounts and may even install accessories in order to show their gratitude. The interest which you pay over a period of time will usually be way less than the discounts which you will get if you are getting your car finance.