When you want to buy a new or used vehicle, being able to pay cash for the full purchase price may seem like the best option, but depending on your situation and credit score, financing a loan with manageable payments may be a better option for you. At North Coast Auto Mall we can offer you advice on how to find the right payment option for your dream car. Discuss your options and goals with a financing professional by contacting our team online or by phone. To explore your options ahead of time, we’ll help you understand the pros and cons of paying cash for versus financing a car in this guide.
Many people will tell you that if you can afford it, paying cash for a car is always better than financing. And, on the surface, that might seem to be the case. You don’t pay any interest on your purchase, and you don’t have to worry about monthly loan repayments. Once you drive away from the dealership, you have no further financial obligation.
However there are some downsides to paying cash. For instance, paying cash for your car might use up all your financial reserves and leave you vulnerable during emergencies. Additionally, by not financing your car purchase, you’re missing out on the opportunity to improve your credit score through timely payments.
Making loan repayments on time every month can improve your credit score, which can make it easier to get future loans and lower loan rates, exclusive credit card deals, and many other benefits associated with good credit standing.
At North Coast Auto Mall of Cleveland, we offer buy here pay here financing that allow drivers with poor credit to access the car of their dreams while also rebuilding their credit through manageable payments.
If you don’t have a lot of cash on hand or if you’re struggling with loan approval, our professional finance team can get you approved and find you the best interest rates around. With a buy here pay here loan, you could be better off by keeping your money in the bank or paying towards other expenses.
If you’re interested in financing your car purchase, you can choose to apply for a bank loan or choose a dealership with in-house financing services. The best option for you depends on your circumstances, though making the right choice can save you money and time.
For a bank loan, you go in person to, or apply online at, the bank or credit union. If your loan application is approved, you’ll receive a quote and a letter of commitment to show the salesperson at the dealership. However, the bank or credit union might ask you for specific details about the car, which can hold up the process if you haven’t decided which vehicle you want.
You should bear in mind that, depending on the bank or credit union, there may be restrictions on the age and mileage if you’re buying a used car. A used vehicle can also attract higher interest rates than a new car. Also if you have a poor credit score, you may be denied approval outright at many banks and credit unions.
With North Coast Auto Mall’s in-house financing, the process to get approved is quicker, smoother, and there are much more flexible options. A bank loan can involve days of waiting for approval, with possible rejection. But with dealer financing, you can get approved regardless of your credit score and drive away in your dream car on the same day.
Even if your credit score isn’t the best, you’re more likely to be approved for in-house financing than with a bank. As well as getting you behind the wheel of the car you want, you also get the opportunity to improve your credit score through a managed payment schedule, bringing you long-term benefits after your initial vehicle purchase.
We’ve helped hundreds of drivers find the answers to their car credit questions and find a car they love regardless of their credit history. To explore your personalized options and credit history with a helpful professional, contact us online, by phone, or visit us at North Coast Auto Mall in Cleveland today. Our finance experts will be happy to answer any questions you have and we’ll work hard to ensure you get a vehicle you love.