Finance Your Next
Car Purchase


Buying a car with cash is not always an option for most folks.  Saving money in upwards of $10,000 can be quite a feat that most people will have trouble completing.  Here at Auto Proz, we have been helping many people in the San Diego county area with financing their next vehicle.  For more info about financing, read below.






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Buying a car is one of the most important financial decisions you’ll ever make in your life. A used car can be a great, cost-effective option for the budget-conscious buyer. But when you decide on a car, you’ll then have to figure out if you want to finance it or buy it outright.

Financing a used car can offer you additional benefits that buying a car in cash won’t. Here are some reasons you should consider borrowing instead of buying.

More Cash Liquidity

It’s true that paying in cash will mean that you won’t be in debt to anyone, but you will give up some of your liquidity when you do so. Spending all your money at one time will mean that you won’t be able to buy other things that you might need.

Whereas, with a low monthly payment, you’ll be able to spend your money on other necessities. A good rule of thumb is to make sure that your car installment does not exceed 20% of your take-home pay. It should be even less if money is tight.

You could deposit the rest of your cash into to an emergency fund, pay for school, pay for groceries, or anything else that you want. You could even take the money you would have spent buying the car outright, invest it and get a return.

Low-Interest Rates

You can get a used car financed at extremely low-interest rates, sometimes as low as 2%. When you finance your car at such a low rate, you have the flexibility to choose what to do with your money instead of saying goodbye to it forever by buying a car in cash. Also, if you invest the cash in a high-returning asset, it will be easier to cover the car interest in the future.

When you choose a shorter loan term then you will pay less interest but that normally means that your monthly installment will be higher. So, it’s a good idea to weigh the pros and cons before you sign off on the terms of your loan.

Low Down payment

Many lease agreements have low down payments and in some instances, you can convince the dealer to waive the down payment entirely. You’ll pay sales tax on the leased car but in most states, they charge the tax on the monthly installment and not on the full cost of the car. So, again that means you keep more money in your pocket.

All of the upsides to financing a used car only apply if your credit is good. When you have bad credit, buying a car in cash is your best option. But if you have a healthy credit score, then you should definitely consider taking out a loan to buy a used car.

There are options out there that allow you to spend a reasonable monthly amount for your car, giving you the flexibility to use the rest of your cash the way you want to. Now, that’s a good deal.
Not quite interested in paying interest fees?  Try paying in cash to save some money.