Reasons to Finance Your Next Car or Truck Purchase

Posted on 03 January 2012 by admin

Many people are considering a new or used vehicle purchase.  However, questions remain as to whether financing or paying cash for the next vehicle purchase is the appropriate option.  Below are four reasons why financing might be the best option for you.1. Helps Save Money

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.

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