What's the best way to purchase a car?
I have money saved up for a car, but I'm also intrigued about financing options. What's the best way to purchase a car?
“Depending on your situation, you have four ways of purchasing a vehicle. You can:
- use an unsecured loan, such as a line of credit.
- finance the car as a traditional car loan.
- pay cash for the car.
- use a combination of two or more of these options.
There’s no way of telling which one is the best, as your needs may be different than someone else’s. A long-term loan, like a 72 month loan, might be the best option for some people, while others can absorb a $30,000 hit to their savings.
Keep in mind that if you choose financing, the lender will require full coverage for your vehicle. Full coverage can be pricey, especially if you use the lender’s insurance, but you can save money by comparing rates. Using a smart comparison tool like Jerry makes the process easy. Jerry does all the hard work for you, pulling quotes from the top 50 companies and delivering the best deals to your phone in minutes.
Buying a car is one of the most expensive assets people invest in. Do the math and see what you can do that makes you feel comfortable with your purchase.”
MORE: What is a Car Lien?
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