Are you looking to own or purchase a vehicle soon or in the near future? Then this article is for you. Aside from the model and other vehicle specifications, you should think about the amount of money you have to spend on the vehicle and the intended function or purpose it will serve.
To help ease the decision-making process, let us assist you in weighing your options.
Firstly, let’s go through the following questions:
- What type of vehicle would you like?
- How much does it cost?
- Do you have the bulk of the cost ready to make the purchase?
- Would you like an opportunity to spread the cost of purchasing a vehicle over a period of time?
- Are you looking to make asset gains?
If you had at least 2 yeses for the last 3 questions, you should keep reading.
Let’s talk vehicle financing.
Vehicle financing is a means to acquire ownership of a vehicle without having to pay the full cost upfront. It simply means to take out a vehicle loan you would pay over a period of time.
While you may have been hesitant to use vehicle finance in the past, here are some advantages that might make you reconsider.
You can get a loan for up to 100% of the vehicle cost.
To get vehicle financing, you don’t have to wait until you’ve saved up enough money to buy a vehicle if you need one right away. Within the time it takes the dealer to prepare your vehicle and organize the necessary paperwork, you can drive away in your new vehicle. Vehicle financing makes a lot of sense if the monthly finance repayment is manageable.
You can put the money into other vital things.
Spending a large sum of money on an asset upfront isn’t always the best option, especially if you have other commitments and liabilities to fund. You might have a family to provide for or a business to run. You might also need the money for an unforeseen need, such as a medical bill or a business emergency.
Your vehicle finance loan can be deducted from your taxes.
There is a possibility for your vehicle finance loan to be tax-deductible. If you own a business and the business lends money to buy a company vehicle, the finance charges may be tax-deductible. Consult with your accountant and tax consultants but usually, you can deduct interest on a car loan, insurance premiums, repairs, and maintenance.
Helps you build credit credence
Making on-time vehicle loan payments establishes a strong credit history and establishes a financial track record. This will come in handy in the future should you need money for something else, such as a business or emergency loan.
Insurance coverage
Usually, automobiles gotten through vehicle financing are covered by insurance. This helps if your vehicle is involved in an accident, as your insurance should typically cover it. This is why it is important to have insurance coverage; as insurance for a personal vehicle bought outrightly might be expensive. However, if your vehicle is gotten through vehicle financing, your lease financier may cover some of your insurance costs.
Are these sufficient enough reasons for you to consider a shot at vehicle financing? If yes, we have good news for you.
Luckily MAX offers you the opportunity to finance your vehicle if you’ve decided that vehicle financing is the way to go. Let’s have a chat here
