Car Financing

Why you should not refinance your car?

In general, you also don’t want to refinance your car loan if you’ll end up extending the loan’s term. For example, if you’re currently set to pay off your loan in 36 months, refinancing to 48 or 60 months is…

Why you should never put a down payment on a car?

A down payment may help you to more easily qualify for an auto loan, especially if you have lower credit scores. Without a down payment, the lender has more to lose if you don’t repay the loan and they need…

Why you should not finance a car?

Financing a car may be a good idea when: You want to drive a newer car you’d be unable to save up enough cash for in a reasonable amount of time. The interest rate is low, so the extra costs…

Why you should never have a car payment?

Most people get a ton of car debt, which makes it so much harder to really invest. When you increase your debts, you spend more of your monthly income paying those debts, and save less money each money for investments.…

Why you should never lease a car?

You don’t normally earn equity when you lease, typically because what you owe on the car only catches up to its value at the end of a lease. This could be viewed as a waste of money by some, since…

Why you should never lease a vehicle?

Leasing Cons: You don’t own the car at the end of the lease (although there is always the option to buy). Your mileage is typically limited to 12,000 miles a year (you can purchase extra). … You’ll pay more in…

Why you should never finance a car?

Higher credit scores could land you lower rates, and vice versa. Financing a car may be a good idea when: You want to drive a newer car you’d be unable to save up enough cash for in a reasonable amount…

Why you should lease a car?

Monthly lease payments cover depreciation and taxes only for the time you have the vehicle. That means the payments will be lower than if you were to buy the car and take out a loan for the same number of…

Why you should lease a car instead of buy?

The major drawback of leasing is that you don’t acquire any equity in the vehicle. It’s a bit like renting an apartment. You make monthly payments but have no ownership claim to the property once the lease expires. In this…

Why you should lease a car reddit?

Leasing a car is not bad by itself. The only issue that people bring up is that you never build equity – leasing pays the depreciation only on the car, which is why it’s usually a lower monthly payment than…