Benefits of Buying a Car/Truck
If you want to keep your vehicle as long as possible, buying is probably better for you. When you buy, you own the car when the loan is paid off. Until the loan is paid off, the lender owns the vehicle. As you continue to make loan payments, you’re gaining equity in the vehicle.
Some auto loans specify that you cannot alter the vehicle in any way until the loan is paid off. Once you have the title to the car, you can do whatever you want with it, like change the paint color, add bumper stickers, add a new audio system, alter the suspension or upgrade the wheels and tires, though many times you can alter the vehicle before you have the title.
One of the biggest benefits that buying has over leasing is that there are no mileage restrictions. If you have a long commute or do a lot of driving in general, buying is most likely better for you. You can buy a car with sometimes 0 money, where as they can use rebate if they have as down payment.
Remember When I sold a ford Taurus $1325. 00 below dealers invoice. Always Negotiate down payment. If you saved up several thousand of dollars, do not use all for down payment. Remember emergences come for money, then use this money for emergencies. especially when you are getting low interest rate finance, Remember O.P.M (Other peoples Money)
Disadvantage of Buying a CAR/Truck
When you buy a new car, you roll the dice a bit with its resale value. It’s hard to determine what the vehicle will be worth when you’re ready to trade it in or sell it. With leasing, that future value is predicted up front and put in writing on the contract. If you look at the car’s residual value that’s used to calculate a lease on it, this will help you determine what it will be worth after a few years if you plan on buying.
Sometimes, a buyer will owe more on the car loan than the car is currently worth, which is known as being upside-down on the loan. This is only a drawback if you plan on selling it or trading it in. This makes it more difficult to get out of the car because you’ll have to come up with the extra money just to sell it.
This can vary based on many factors, though, including your credit score, income, level of debt and more. If you’re not able to save up a sizeable down payment, consider waiting to buy, buying a cheaper car, buying a used car or leasing a new car.
One other downside of buying is that for some people’s budgets, lower monthly payments are a must-have. To get the monthly payments down to a smaller amount, lenders can stretch the car loan out longer. Auto loans can last four, five, six or even seven years. or more.
Remember that you’ll typically pay more in interest the longer you pay on the loan, so if you can pay it off early or take out a shorter three- or four-year loan, you might be able to save some money. A larger down payment will also help lower your monthly payments when you finance.
Make sure you go through Auto Monthly Payment Tables on this site so you do not need a calculator, always stay within your budget, driving needs, lifestyle and credit history before you decide whether to buy or lease.