If you can afford to buy a car in cash, you shouldn’t need to take out a car loan. Don’t be tempted to buy multiple products but on credit. You better focus on buying in cash the products you really need. Some of the advantages of buying a car in cash below can be a separate motivation for you not to be tempted to buy a car on credit.
1. Free of Charge, Easy to Refund
If buying on credit brings a burden, buying with cash actually eliminates the burden. Directly the absolute car belongs to the buyer. The proof is that the car ownership certificate is directly provided. Thus, if there is an urgent need after buying the car, the car can be cashed back and the money can be used.
This is different from the road of credit. You still have to wait for the payment to be paid until the car ownership is handed over to you. During the installment period there is at least a double burden, first of course you have to pay the installment fee every month, while on the other hand if there is a sudden need the car cannot immediately be resold.
2. Avoid Shock Therapy, with No Rising Interest Rates
It was previously reviewed that the interest rate for installments is highly dependent on the loan interest rate, which is all regulated by BI. This means that if at one time there is an increase, the number of installments that must be paid plus interest obviously swells. Therefore, buying with cash frees oneself from the volatile conditions associated with the loan interest rate.
3. Some Dealers Have Discount Programs for Cash Purchases
The discount program from the dealer is an immediate benefit that can be felt and the most visible. Have you ever calculated that buying on credit is much more expensive than buying in cash or cash? Try to calculate directly the purchase on credit and then accumulate the results when compared to buying a car in cash. The results will be surprising where buying on credit is many times more expensive when compared to buying a car with cash.
Purchasing credit will involve a lot of costs, starting from the down payment / down payment, monthly installments plus interest, not to mention the penalty for late monthly payments that can be included in the accumulation of calculations. While cash payments will provide the original price of the car. Not to mention, certain dealers have promos in the form of price discounts or others if the buyer pays in cash.
Adjust to Needs and Finances
Buying anything should be adjusted to the ability. This includes buying a car. It’s a good idea to make an in-depth recalculation of all the costs that must be paid so that they don’t become an excessive financial burden.