Cash vs. Financing for Car Sales In Houma, LA

Paying Cash vs. Financing a Car in Houma, LA

If you’ve decided that it’s time to buy a new car, whether it’s brand-new or pre-owned, you have another big decision to make – should you pay cash or finance your car? This decision can be tough for many buyers, because there are advantages to both methods of paying for your new car. Let’s explore when it’s best to pay cash, when it’s best to finance, and how you can get a great deal either way at Barker Buick GMC.

When to Pay Cash

If you have the means to pay cash for your new car, you can experience some great benefits that you otherwise wouldn’t experience if you financed a car. Paying cash means that your monthly budget won’t be affected by a car payment, and you won’t be taking on debt to get your new car. You also won’t pay any extra for your car because of the interest rate an auto loan would carry. Paying cash for your car also means that should unexpected financial troubles come up you’ll never be at risk of defaulting on your loan and therefore losing your car.

However, there are a few downsides you’ll want to consider when you’re looking at paying cash. First, new cars – even pre-owned models – cost thousands of dollars, and that can be quite a large sum to suddenly pull out of your savings account, so you’ll want to make sure you still have enough left in the bank for a rainy-day fund. In this same vein, you may not have enough saved up for the model you really want or need. You also won’t have an opportunity to build your credit score by making on-time payments on an auto loan.

When it’s said and done, you have the cash in the bank to make the purchase, and you already have a great credit history that doesn’t need a boost, then paying cash for your car might make the most sense for you.

When to Finance

If you’re hesitant about financing a car because of the added debt, we’re here to reassure you that an auto loan you can afford can actually help build your credit score for the exact reason we’ve mentioned – paying on your loan in timely installments will give your credits score quite the boost. Financing is also a good idea when you have enough saved for a down payment, but not an entire car. If you’re looking at purchasing a brand-new car, there’s a good chance that you’ll be able to take advantage of very low interest rates and other new car offers.

If you’re planning on financing your car, you’ll want to make sure that you stick to your budget so that you can ensure you’re able to make on-time payments that you can afford. We also want to encourage shoppers with lower credit scores to reach out to us about any hesitations you may have – we offer special financing that can help you get the auto loan you need.

Get a Great Deal at Barker Buick GMC in Houma, LA

Whether you choose to pay cash or finance your new vehicle, you can get an incredible deal on a new Buick or GMC vehicle in Houma, LA when you shop with us at Barker Buick GMC. Our sales team will help you find just the right SUV or truck for your needs, and our financing team will ensure that you get a great rate and loan should you choose to finance. Browse our new and pre-owned inventories at Barker Buick GMC to find your dream car in Houma, LA today.