Benefits of Financing Your Car

March, 2022

Buying a new or used car is a large investment, often it is the second-largest purchase you will make in your lifetime. How you pay for your new car will depend on your financial situation, but generally, your two options are to pay cash or to finance with a car loan.

Is one payment option better than the other? Here we discuss the benefits of buying a car on finance.

Establish Credit

If you have never needed to borrow money from a financial institution before, you will not have a credit history. Establishing a positive financial track record is a great idea that will be beneficial to you in the future when you look to finance a mortgage or business. As long as you meet your obligations to make the full monthly repayment on time, you will improve your credit rating.

No Deposit Required

In many cases, you will be able to purchase a car without having to pay anything upfront. Financing 100% of the cost is very common, which means you do not need to wait months and months or even years to save up for your next set of wheels.

Repayment Options

Another benefit of financing a car is that you get to choose your repayment options. Having flexible options mean you get to choose your repayment terms to suit your budget, such as making your repayments weekly, fortnightly or monthly, and finance terms up to 7 years. Use our handy car loan repayment calculator to find out what your repayments could be.

Can be Tax Deductible

If you are purchasing a car for business use, then the running costs and the interest payable on the car loan can be tax-deductible. As always it is best to speak to your tax accountant before making any financial decisions.

Keep Your Cash

Why get a car loan if you have some or all of the purchase price available in cash? Life is full of unexpected surprises so it is always wise to have emergency funds for urgent medical bills, house repairs, or even a holiday.

Why Use Dealership Finance?

Now you know the benefits of buying a car on finance, who should you use to finance your chosen car? Financing your car through a dealership like Carz4u offers a number of benefits over taking out a personal loan or using bank finance.

Ease

It can be stressful and time-consuming researching different lenders and banks and then submitting the paperwork and applications. If you utilise the finance manager at Carz4u, they have access to a panel of lenders and can help you choose the best lender for your financial situation. Plus, they work for you, not the bank, so will find the best deal to suit your situation. Simple!

Speed

Depending on your financial situation, the finance managers at Carz4u can have you approved and driving away in your new car on the same day! Dealership finance is typically faster than a bank so if you are keen to get on the road, financing through a dealership such as Carz4u is the quickest option.

Choose Carz4u – Perth’s used vehicle superstore!

Carz4U has hand-selected a large range of quality used 4WDs, 4x4s, utilities, SUVs, cars, and vans. If you are looking to purchase a quality used vehicle, look no further! Our finance managers can have you driving away in your next car in no time at all. Enquire about finance at Carz4u today.