When we acquire something as important as a new car, we doubt whether it is better to wait and pay it in cash or opt for a vehicle loan. The truth is that in developed countries like the USA almost 100% of the population prefers to opt for a loan to save money.
Learn the reasons why even finance experts recommend vehicle credit:
For experts, a car is a good that is devalued over time, it is not the same as a property, which could even tend to increase if you bought it at a good time. For this reason, paying a car in cash means wasting an amount of money that could be better spent. Only by leaving a store, the new car can lose up to 20% of its initial value.
By not paying a car in cash – you must pay an initial, which in many cases represents from 10% of the total price -, you will have that money to invest it. This 80%, you can deposit in a savings account or mutual funds, among other options that, over time, allow you to earn interest for the money you have deposited – not to mention if you can invest in your own business!
The key is to obtain a higher interest rate for your money than the credit rate you are paying.
When you choose to buy a financed car, it is best to opt for a vehicle loan that has interest rates lower than that of a personal loan, and that is that the same car is guaranteed, also includes the insurance of the vehicle in its cost. Shoemaker to his shoes!