FINANCE THE VEHICLE INSTEAD OF PAYING IN CASH

Acquiring a new vehicle is one of those goals that are definitely worth saving for. Numerous people have this goal on their planning list and set aside a certain amount of money each month to help them achieve the goal. Certainly the opinion is correct that with a cash payment at the trusted dealer you can save again noticeably on the purchase price by percentage. However, this does not mean that cash payments are necessarily the best option. Due to the still noticeable tail of the European economic crisis, the interest rate level on loans and financing has changed significantly in favor of the consumer, which of course also had an impact on the credit interest. Savers rarely get happy these days

The advantages of financing

A good old saying goes “Save your time – then you have an emergency!”. This proverb has still in a certain way retained its validity, but was drawn up at a time when there was still a noticeably higher interest rate for the savings from the banks. The money saved grew faster due to the interest rate, so that the saver then had a correspondingly higher financial amount available for his financial plans. In times when the investment income on savings has a noticeable tax impact and the banks are even thinking about penalty interest for savers, the adage is more or less obsolete. Anyone who bears in buying a car should take this into account. On the one hand, it now takes considerably longer to until the amount for the desired vehicle is really available and, on the other hand, it is often extremely difficult to part with the money that has been painstakingly saved. The interest rate level is currently so extremely low that vehicle financing is viewed as considerably more optimal in many cases.

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