Is It Better to Finance or Pay Cash?

Are you shopping for a new vehicle? Today, we’re highlighting the perks of securing Mercedes-Benz financing versus paying cash for a new vehicle at Keyes European.  

What is Auto Financing?  

Financing involves securing a loan for your new vehicle, and you can apply for financing at our dealership. Our financial experts will collect your basic buying criteria including your income, debt, and credit score. Then, we will submit your info to the lenders we work with to find you a competitive offer.  

How Does It Work?  

Your financing will come from an outside lending institution. You will start by figuring out a term for your loan (most auto loans last between 36 and 84 months). Then, your total investment will be divided into equal monthly payments. Your payments will also include interest, which is a direct fee you owe your lender.  

What are the Benefits of Financing?  

Financing provides a great opportunity for buyers who do not want to (or can’t) pay for a vehicle upfront. This can also help you develop credit by establishing a different type of credit.

Plus, by securing a loan and repaying it in a timely manner, you can prove that you are a reliable borrower.   

What are the Benefits of Paying Cash?  

Paying cash for a vehicle upfront can result in significant savings, even thousands of dollars, since you won’t be paying interest. Keep in mind that you’ll also want to weigh the cost savings from your loan against what you could be earning with the money in savings, investments, etc. You also want to ensure you aren’t having to turn around and borrow money for an emergency that could come with higher rates.   

Still have questions? Reach out to our Mercedes-Benz dealership in Van Nuys, CA. We’d love to discuss your options with you today!