Why Buy Here Pay Here Financing is Better than Paying Cash for Your Next Used Car?

Used car financing vs paying cash is still a raging debate even when financing cars is so much simpler now. Sure, paying the entire vehicle’s price in cash has its benefits, provided you have amassed that amount and can afford the same. You stay clear from the interest payments. You do not have the worries of credit defaults and car repossessions. Yet, financing a used car places a few distinct advantages on the table that paying cash can seldom compete with and the best buy here pay here in Spartanburg can make your financing experience better and helpful in the long term.

Here is why you can save or invest the cash available and search for a reputed buy here pay here near Spartanburg instead to finance your next used car. Especially when you have a bad credit score, financing a vehicle always makes more logical sense than paying cash.

1.You miss out on the opportunity to rebuild your credit score

The only way to improve your current bad credit score is to timely pay back your existing debt. But if you do not have any debt to pay back, your credit score will remain where it is pegged now. Thus, by financing your next used vehicle, you can improve your chances of taking future loans. Some buy here pay here car lots in Spartanburg, SC, like Uncle Joe’s, report your timely credit payments to the concerned authorities and you get the opportunity to work on your credit score.

2.Building cash reserves take time

Think about the time it took you to build the current cash reserve that you will use to pay for your next used car. Then think how long will it take you to build back this reserve to the same amount, given your present income and monthly expenditure. At times, the associated interest rate of used car BHPH financing is worth it so that you can retain your current purchasing power. If you spend your cash all at once – an amount as considerable as buying a car – you might have to cut down on other necessary expenses because your funds are now limited.

3.You might find yourself in a tight spot during emergencies

A medical or an employment-related emergency can hit any time. And during such situations, cash gives you the cushioning you require to break the fall. Paying around $500 a month in credit payments will not hurt you if you have sufficient cash still left in the bank. But if you are out of cash because you used it entirely to pay for your car, you might have to sell the vehicle to see off the crisis. This way, you lose both your cash and your car. Finance your car instead  and let the cash stay as your backup plan.

4.Invest, buy important insurances, plan for the future

You can do so much with the disposable cash that you currently have at hand. First up, you should invest any cash that you might have in retirement funds or any other instruments so that your financial future is secured. Second, use the available cash to buy life and health insurance so that your life does not go for a toss every time an emergency hits. Lastly, save the cash in a college fund or a home fund that enables you to have a better life going ahead. Financing your next used car from the best buy here pay here in Spartanburg can make all these possible.

Visit Uncle Joe’s used cars and trucks to get excellent deals on bad credit financing. We are among the top buy here pay here car lots in Spartanburg, SC that assures you easy financing, competitive interest rates, hard-to-beat trade-in offers, and flexible down payment options.