If you are able to take out a loan at a low rate of interest, chances are you are able to save a good amount of money. Financing a vehicle purchase enables you to use your money to make necessary investments with the money you do not use for a cash purchase. Money kept in a savings account or invested in other channels will offer a higher rate of interest than using your cash towards a vehicle.
2. Affordable Loan Payments
If you have a strict budget and maintain your monthly expenses well, keeping your payments within a structured amount affords you the flexibility and freedom to build a cash reserve for future purchases.
3. Tax Advantage
You might be afforded a tax deduction with your car purchase based upon the usage of your vehicle and your tax structure. Check with your financial adviser and the Internal Revenue Service (IRS) to confirm your eligibility first.
4. No Mileage Restriction
Financing a vehicle purchase affords you the opportunity to drive as many miles as you want–there are not any mileage restrictions like some automotive leases. This helps you drive your new vehicle an unlimited distance.