subject: Pay Cash For A Ford Or Finance It? [print this page] When it comes to purchasing a Ford, whether it be a new one or a used one, should you finance it or pay cash for it? That is the question posed to you. Some people belong to the cash camp and like to buy almost everything with money. For others, buying a vehicle with cash is not possible. These people rely on financing options to allow them to have a good ride to drive.
There are good points to paying for a car with cash. You do not have to worry about making loan payments on a monthly basis. If you run into a problem in your life, such as an emergency medical situation that you need to fork over money for, you don't have to struggle to come up with the money to pay for your car as well. Your budget is less strained when you choose the cash route, as opposed to the financing route.
A person who pays for their vehicle in cash outright does not have to pay any finance or interest charges. This is a definite perk of saying yes to paying cash for a car!
When you purchase a new or used Ford with cash, it is yours from the moment you drive it off the lot. You do not owe any money to a dealership or to anyone. This means that you have the option of selling the vehicle any time you wish.
Financing may be a better option if you would have to drain your savings account to purchase the car. It is never wise to drain money from your bank account to make a pricey purchase. If your liquid assets are not that great, financing a Ford is the smart thing to do. You want a good return on an investment (any investment) and cars depreciate in value as soon as you drive them off of the lot.
You want to build up your emergency fund and not tear it down. If you decide to take money out of your bank account to buy a car in cash, you have to have enough left over for anything unexpected that might occur. Never leave yourself short of money! Always check and double check to make sure that you have ample funds in the event of an emergency before you use the money for a vehicle.
The choice to finance means that you are using credit to pay for the automobile and you has your own cash assets for your other essential needs. Once you have made all of your monthly payments, you will own the car. If you take the time to visit Ford dealerships you will find plenty of loan deals that offer a low annual percentage rate (APR).
by: Ace Abbey
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