One of the most stressful decisions you will ever make in your life revolves around buying a car. Whether it is new or used, a car is an ultimate status sign of independence. Being able to drive yourself around is always a dream when you reach driving age.
Although it is the most common form of financing, taking out an auto loan is something a lot of people do not want. It involves being responsible for a lot of money over the course of a short time and doesn’t take into account what might happen if you lose your job, become disabled, etc. That is when a loan could become a burden, and you don’t want that.
If you have the means, consider putting cash away in the bank. Do a little research. High interest saving accounts are out there if you do a little research. If you have a bank already and don’t want to switch banks for the purpose of an account, talk to a manager at your bank. They will be able to recommend the best alternatives for you.
A used car can be found for as little as $1,000 or $2,000 in some cases, meaning plastic could finance your purchase. If you have adequate financing in your account and a good credit score, a credit cards comparison can turn up a great interest rate to get you through your purchase and pay it off.
A little-known method of saving for the new vehicle is auto bonds, which are securities backed by an asset – in this case, the asset is auto loans already made to customers. The more auto bonds come into play, the lower a financing rate might be, so if you have the means to invest in auto bonds while saving for the car purchase look into it.
Buying a car does not have to be stressful. It’s all about savings.
*This is a partnered post.