Should you pay cash or finance your new car?

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Motoring Notícia

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You’ve decided to treat yourself to a new car, congratulations! After picking out your dream machine, the aim of the game turns to negotiating a deal that suits you both now and in the long term. There are two main options when it comes to paying for a new car: you can either pay the full sum upfront, drawing on existing savings, or you can opt for a finance package that involves taking out a loan and making periodic payments over a set term.

A loan can be obtained from either the finance division of a car dealer, or from external lenders. This method of acquiring a new car is becoming increasingly popular, according to industry insiders. “Going off last month’s results, anywhere between 50 per cent and 60 per cent of our deliveries are financed,” a Western Ford spokesperson told CarExpert. “There are many different ways that someone can structure a finance loan.

 

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