Paying cash for a new vehicle may not be your best option. With interest rates at an all time low, you may be better off financing even if you have the cash available. The cash that you use for purchasing your new car can be used for unplanned events, emergencies, or to pay off debt carrying a higher interest rate. In most cases, people are making more interest on their investments than they would be paying on a new car purchase. Talk to one of our finance managers for more information!
Advantages of Financing Through Competition Toyota
- Convenience – one stop shopping!
- Open agreements
- Flexible down payment policy
- Tailored loan packages
- Speedy approvals
- New source of credit
- Payment protection plans available
- Fixed and variable interest rates
- Low interest rates
Top 5 Reasons You Should Not Use Your Line Of Credit
- Floating interest rates fluctuate with Prime and cause volatility
- Variable payment schedules often mean you don’t pay off the loan as quick and hence you pay more interest over the long term
- Secured lines of credit are safeguarded by your home. This second mortgage is not a recommended way of financing a vehicle
- If you sell your home, the secured line of credit has to be paid out in full – including the loan amount for your vehicle
- The terms and conditions of a line of credit are not designed for automotive purchases due to the depreciation factor
Disadvantages of Paying Cash
- Loss of investment opportunities (R.R.S.P.’s, R.E.S.P.’s, T.F.S.A., G.I.C.’s, mutual funds, real estate, home improvements
- Lost opportunity to pay down mortgage
- Loss of emergency funds
- May be penalties for cashing out investments
- Lost opportunity for inexpensive life and disability loan insurance
- No credit rating established