Advantages and Disadvantages of Car Financing

One of our greatest desires is to either have our own house or own car. Typically, owning a house is more important, but it does not mean that owning a car is not necessary. The cars were invented to live our life even better; we can travel to different places with our family and loved ones, or have fun like having a car racing with your friends or a road trip. We also use cars when there is an emergency like delivering your kid or your pregnant wife to the hospital, even though you can pay for a cab, it is likely more efficient to use your own car because if you forgot something that is really important you can always get it back without wasting your time in looking for a cab or taxi.


Cars are really expensive, even the oldest model of the cars can still cost up to thousands while for the latest versions; it costs more than a million. Although you can buy a second hand car, it is not advisable because even if you test it out, there are still tendencies that the car suffered from great damage, but the owner of the car didn’t tell you. If it is your first time to buy a car, make sure that you will focus more on the quality, the functions or the model of the car and not its price. Even if the price of the car is quite big or exceeds your budget, you can still purchase it by using car finance.

Car financing is probably the best choice you have if you are in that situation where you can’t afford the kind of car that you want. Buying the car that you really want is important because if you will buy the car of your choice, you will be motivated to take care of it and use it frequently unlike buying the car that you don’t like. With the use of the car financing, you can buy your dream car, but make sure that you will use this wisely; you can get advantages and disadvantages for loaning a car.

Car financing is probably the best choice you have if you are in that situation where you can’t afford the kind of car that you want.

Advantage of car financing is if you are going to loan a car, it only means that you can use the car even though you didn’t fully pay for it yet.

Disadvantage of car financing:

The bad thing about car financing is that, it will take a long time for you to really own the car because while you are paying for its price, you are also paying for its interest. The car financing works by letting you use the car and pay for it month by month or depends on the condition of the seller, but that isn’t the important part, the important is you will likely pay for it more than the price of the car in exchange of the months that you have used it without paying its full price.

Remember, the seller will only let you loan the car when he or she thinks that you are capable of paying the required amount in each month.