So you’re finally ready to take the plunge and buy that new sports car you’ve been eyeing up for months. Congratulations! But before you head down to the dealership, there are a few things you need to consider—namely, how you’re going to finance your new car. Here are seven great reasons to finance your next venture into the world of sports cars:
1. You Can Get A Lower Interest Rate
If you have good credit, you may be able to get a lower interest rate on a car loan than you would on a personal loan from a bank. This can save you hundreds or even thousands of dollars in interest over the life of the loan.
2. You Can Get A Longer Loan Term
Car loans are typically available with longer terms than personal loans, which means you can spread out your payments over a longer period of time and lower your monthly payments. This can be helpful if you’re on a tight budget and can’t afford a large monthly payment.
3. You Can Trade In Your Old Car Easily
If you own your current car outright, you’ll need to sell it separately when you buy a new one. This can be time-consuming and stressful. However, if you finance your new car, most dealerships will allow you to trade in your old car as part of the deal.
4. You Don’t Have To Worry About Depreciation
When you buy a car outright, it starts depreciating in value as soon as you drive it off the lot. With a financed car, however, the depreciation is factored into your loan payments, so you don’t have to worry about it.
5. You Can Get Pre-Approved For A Loan
Getting pre-approved for a loan before heading to the dealership can give you negotiating power when it comes time to purchase your car. And if you do end up paying more than the pre-approved amount, you’ll only be responsible for the interest on the difference.
6. You May Qualify For Manufacturer Incentives
If you finance your car through the dealership or through the manufacturer’s financing arm, you may qualify for special incentives like 0% financing or cashback offers. These incentives can save you thousands of dollars on your purchase price.
7. You Can Build Your Credit Score
If handled responsibly, financing a car can help improve your credit score by adding positive information to your credit report. This can benefit you later down the road when it comes time to apply for other types of loans like mortgages and home equity loans.
As you can see, there are many benefits to financing your new sports car instead of paying cash outright for it. So if you’re considering financing your next vehicle purchase, be sure to keep these seven reasons in mind!