Paying Cash vs. Financing a Car in Lucedale, MS

If you’ve decided that you’re going to purchase a new car, either brand new or pre-owned, the first decision you’ll need to make is how you plan to pay for the new car. Even when you’re purchasing a pre-owned model, you’re still looking at a large, several thousand-dollar purchase, so should you pay cash or finance your new car? There are pros and cons to both, so let’s take a closer look at when you should pay cash for a car versus when you would want to finance your car. No matter which you choose, you’ll get an amazing deal on your new car at Walt Massey Chevrolet Lucedale.

When to Pay Cash

If you’re able to pay cash for your car, you’ll reap some enticing benefits that you can’t get by financing a car. To start, paying cash means that you’ll cover the entire cost of the car—the price, taxes, and any fees—upfront in one lump sum, which means that you won’t need to account for a recurring car payment in your monthly budget. You also won’t be taking on any new debt to pay for your car. Plus, you’ll only pay the total of all of the taxes, fees, etc. on the day you purchase the car which means you’ll save big on interest. Finally, paying cash for your car means that you own the car free and clear from the day you drive it off our lot, so if you experience financial hardships later down the road, you won’t have to worry about defaulting on an auto loan.

Though there are many benefits to paying cash for a car, there are a few things you’ll want to consider before you shop. The biggest roadblock to paying cash is the price of a car. Even with all of the amazing deals here at Walt Massey Chevrolet Lucedale, there’s no denying that cars are a big financial commitment, and the cost of a car can be a large sum to withdraw from your bank accounts. Before you pay cash, make sure you have enough saved to still have an emergency savings fund. Paying cash also means that you won’t be able to build credit by making on-time payments on an auto loan.

In the end, if you have enough money saved up and have a great credit score already, paying cash could be an attractive and beneficial option for you.

When to Finance

Many people are worried about the debt that they will take on to finance a car, but getting an auto loan that you can afford can help bolster your credit score when you make on-time payments, which makes it a great option for folks who want to boost their credit without opening another credit card. Financing is the best option when you have enough saved up for a down payment but not the entire price of the vehicle. Plus, you will likely be able to take advantage of low rates and other enticing offers for new cars when you finance.

If you plan on financing your car, it’s important to ensure that you don’t take on more than you can reasonably afford. On-time payments will boost your credit, but being saddled with a loan you can’t keep up with will only bring stress. That’s why we keep our prices affordable and offer plenty of extra deals here at Walt Massey Chevrolet Lucedale so that you can afford your dream car.

Find Big Savings at Walt Massey Chevrolet Lucedale in Lucedale, MS

If you have questions about whether you should pay cash or finance your new car, don’t hesitate to contact us at Walt Massey Chevrolet Lucedale. No matter which you choose, you can feel confident knowing that you’re going to get a great deal on any car on our lot. Check out our new and pre-owned inventories at Walt Massey Chevrolet Lucedale today to find your dream car at your dream price!