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Buying Vs. Financing a Used Car

So, you’re in the market for a used vehicle that can give you the reliability you want and need on the road. Whether you’re looking for a used car, SUV or pickup truck, the buying process and financial decisions you have to make are the same. While there are many steps to buying a used car, the biggest one is deciding if you should buy or finance the vehicle you want. There are many differences between buying and financing a used car and you’ll learn what they are here. Keep reading to learn more about the benefits of buying versus financing a used car so you can decide which is right for you.

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Buying a Used Car

When you buy a used car and pay cash for it, you own the vehicle as soon as you sign the contract and paperwork. Buying a used car with cash also helps you stay within your budget and ensures that you don’t overspend on the vehicle you want to buy. Another advantage of buying a used car instead of financing it is that you can save money over the long run by not having to pay any interest on the vehicle you buy, which can add to the overall cost of your vehicle.

Financing a Used Car

Financing a used car still means that you’re buying it, but you don’t own the vehicle until it is completely paid off, which can take years to do. The average term length of financing a used vehicle is five years. When you finance a used car, SUV or pickup truck, you’ll be able to purchase it with the down payment that you choose, so you can keep more of your money in your bank account. With more money in your bank account, you’ll have money available for an emergency situation or other things. Financing a used car will also help you build your credit score as the loan you take out and pay off over time will increase your score if you make monthly payments on time.

If after reading this article you’re still not sure what is right for you and your specific finances, please contact a financial expert at Red Hill Toyota and they’ll be happy to help you. When talking to a finance professional, you’ll be able to ask more questions about the entire buying process to help determine what you should do when you buy your used car, SUV or pickup truck.

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