388 King George Rd, Brantford, ON, N3T 5L8
My Garage

Should you Finance a Car or Pay Cash in Halton Hills?

Should you Finance a Car or Pay Cash in Halton Hills?

When we think of wealthy people buying a new car, we usually envision someone walking into a dealership, throwing a huge sum of cash on the desk, and driving off with the new vehicle.


Granted, there are some individuals who do that, usually athletes who have been drafted by a major league team. though generally it varies whether a wealthy person will finance a car or pay cash in Halton Hills.


Most wealthy car buyers prefer to borrow money at a low-interest rate and preserve their funds for investments that provide a great return on investment.


You may be scratching your head, why you would borrow money and pay interest when you can just pay cash and buy the car outright.


Cars suffer from depreciation and even though demand for new and used cars has never been higher, your car will lose value the moment you drive it off the dealership lot.


This depreciation is wealth you lost and cannot get back!


There is also the opportunity cost that comes with the transaction. When you allocate money to the purchase of the car, you cannot use those funds for other, potentially more lucrative opportunities!


Since interest rates are low and will remain low for the next year or so, why not take out a new Halton Hills car loan at a low-interest rate and invest your money for a better return? This article will help you understand based on your situation; whether you should finance a car or pay with cash in Halton Hills.


How to get a Halton Hills car loan


You may not qualify for the same dollar amount car loan as a wealthy person, because they earn more. But you should be able to get a comparable interest rate, provided your credit score falls within the prime lending threshold of 680.


Even if you are not earning a 6 or 7 figure income, if you are responsible with your finances, you can have access to the lowest interest rates in Halton Hills.


Since we are on the topic of income some individuals will need to show the prospective lender their sources of income.


The lender is not asking to be invasive, they have underwriting requirements and one of them is ensuring they only approve loans to borrowers with a verifiable income and a high credit score.


How to get access to low-interest rate car loans


You may think that rich people have a direct line with car loan providers but that is not the case. If you want to get the lowest car loan interest rates, you must go through a local car dealership, there is no way to get around this requirement.


Local dealerships have a very unique working relationship with car loan providers, the dealership can access wholesale lending which is usually only available to institutional clients.


The dealership can help you every step of the way and can also assist you in selecting the perfect vehicle. With all of these benefits, you should reach out to your local dealership.


By going through the dealership, you are going to save a massive amount of money and still get a great car, so what are you waiting for? Reach out to the dealership now and find out what options are currently available to you.


When you’re ready to either finance a car or pay with cash, get in touch with us at Northway Ford for great deals on new and used vehicles in Glen Abbey and surrounding areas.


Thanks for reading. Be sure to connect with us on FacebookTwitterInstagram, or LinkedIn to stay up to date on our latest great articles! 

Categories: Car Loan

Tags: ,