How much is the difference between financing a car and paying it all completely?
Posted in: car financing | March 8th, 2010
I have enough money to buy the car that I want but I was wondering if I just pay half of the car and pay the rest by financing it , if that would cost alot more then just paying for the car up front at the dealership……btw its a Jeep Wrangler if that helps
unless you can get a 0% interest rate you will end up paying much more by not paying all at once. The bank will charge you a percent of total amount that you borrowed, that’s how banks make money. When I bought my 1st car I had an 11% interest rate and a 5 year loan, over those five years I payed an extra $3,000 Pay it all up front, that’s the best bet.
March 8th, 2010 at 8:19 pm
When you pay a car completely, you have no payments at all. When you finance, you have a monthly payment where you pay overtime (48 months, 60 months, etc.).
References :
March 8th, 2010 at 8:59 pm
unless you can get a 0% interest rate you will end up paying much more by not paying all at once. The bank will charge you a percent of total amount that you borrowed, that’s how banks make money. When I bought my 1st car I had an 11% interest rate and a 5 year loan, over those five years I payed an extra $3,000 Pay it all up front, that’s the best bet.
References :