In this day and age, there are many ways to acquire a vehicle. You can buy new or used, lease or finance it, and drop it off at the mechanic whenever something goes wrong. However, if you’re looking for the best way to get behind the wheel of a car, consider financing your next ride.
Here are some advantages of this approach.
Improves Credit
Like most car buyers, you want to improve your credit score to get better mortgage rates, student loans, etc. Financing a used vehicle is an ideal way to do this since it establishes a positive payment history on your credit report.
Buying new doesn’t have this benefit because there’s no history of making payments that go back very far in time. It’s easier (and cheaper) to get financed for used cars than for new ones, so you can rebuild good credit faster.
You Own Your Car
When you finance a new car, you will own it outright when the loan is paid off (or at least have equity in it). If you lease or take out an auto loan on a used vehicle, however, you will not own it until it has been paid off.
This means that if something goes wrong with the vehicle during the lease or loan and it needs to be repaired or replaced before the end of the contract period, you may be stuck with more costs than expected before being able to drive away in your new ride.
New-Car Rebates Still Apply
New-car rebates are still being offered on many older models of cars, trucks, and SUVs. If you’re in the market for a used vehicle and are looking to save money, it’s worth checking with your used car dealers Calgary to see if they offer new-car rebates on the vehicle you’re interested in.
Most dealerships will have a list of all available rebates posted online or at their dealership. Ensure that you qualify for any applicable rebate offers before purchasing your car.
Get an Affordable Car
Likewise, the price of a used car is typically lower than that of a new one. You have to consider depreciation and interest rates when buying a new car, and those costs can add up quickly. Even if you decide to finance your purchase instead of paying cash, you’ll still pay more for the car when compared with financing a used vehicle.
Often, financing a used vehicle is actually cheaper than buying a brand-new one, which gives you access to even more options like leasing or renting.
Warranties Available on Older Models
If you’re financing a used vehicle, you may be able to purchase one at an affordable rate by taking advantage of the warranty that comes with it. Depending on the manufacturer, some warranties cover all parts and labor for up to six years or 100,000 miles. This means that if anything goes wrong with your car during that period and you owe money on it, the bank will still cover all repairs.
If possible, purchase an extended warranty because it saves you a lot of money in repairs later on down the road when unexpected problems arise — and they always do.
Financing a used vehicle with Calgary used car dealerships is one of the best ways to get your dream car without breaking the bank. It’s also a great way to own your ride debt-free, so you can keep saving money on expenses and improve your credit score.
