Everybody has a dream of buying a car, but before buying, you should keep in mind whether you should save money to buy a car or buy a car in loan. Before taking a loan, you should find out that whether taking loan is necessary for our interest? Or for our basic necessity. Taking a home loan makes some sense because a home is our basic necessity but a car is for our passion and it is not worth taking a loan and pay interest for your passion. But people generally prefer their luxury than a necessity. To fulfill the luxury, they should take a loan for their car which is not a smart choice. Hence, car buyer is considered to be the best option for the overall financial requirement.
5 reasons why you should never prefer loan for your car:
There are some reasons why you should never take a loan for your car-
- You have to pay interest- If you are taking a loan for your car, you are probably reserving a portion of your income every month. If there are some problems and your need increases and a portion will be reserved, you cannot get extra money. When you are paying cash for cars, it will decrease nearly 8-10 percent of the total car price. But taking it in loan will add an extra 8-10 percent of the total car price.
- You will get an idea of prioritizing your needs- If you decide to go pay cash for your car, you will get an idea to analyze your needs and necessities. If you pay cash, you have to save and for saving, you will get a chance to manage your daily expenses, but in taking loans, you will not be having any idea what will happen in future and how to manage sudden circumstances.
- You can go for certified cars rather than going for a loan- Certified cars are secondhand cars. People generally think that second-hand cars may be damaged and not good in performance as compare to new cars. But with uprising of certified policy, you can buy second-hand cars that are certified for its performance.
- You can prefer a secondhand car for cash than a new car for loan- When you take a loan, you should make clear analysis of the inflow of your income. Because taking a loan can be expensive for a person with an average income.
- You can get discounts- Buying a cars for cash, there are chances that you can get discounts. You can pay less for the same car you have to pay an extra if you take loan. So, for these many reasons, cash for car is considered to be the best way to buy a car rather going for a loan.
Nowadays, people generally don’t use car in metropolitan cities don’t use a car because of heavy traffic problems. But for those who give priority to a luxury living they can prefer to pay for car rather than taking a car loan and spending extra money on paying interests.