What Is the Best Way To Finance a Car?


People often miss out on the perks given by choosing the right auto financing method. Some options can get you the car you want for less, but you’ll have to spend more on interest from monthly payments even if you’re given ample time to pay for them. Don’t forget these ways how to finance a car, so you don’t end up spending too much.

  • Cash

One of the easy ways to acquire a car is to pay cash for it from the start. Although this would seem to be a bigger payment, this is the better choice as interest gets larger when you pay on an installment basis. This method also poses no risk of losing the car should one fail to pay up the balance.

  • Dealer Financing or Bank Financing

Sometimes people overlook these methods when buying a vehicle. This may be due to excitement but remember that there are other options: dealer financing or bank financing.

Dealer financing is when the dealer utilizes their preferred bank or lender, and they assist in filing for a loan for the car. On the other hand, bank financing allows you to apply for a loan with an independent lender and handle the details of the loans yourself. Dealer financing does sound enticing, but they may markup the monthly billing to make a profit or even charge their interest rates which can be higher than a bank's.

  • Credit card

A credit card is a good option when paying for a vehicle. Whether paying for the full price or a fraction of it, you can use your credit card as long as you keep up with your monthly credit card payments. However, keep in mind that some dealers have a card handling fee, while some don't accept credit cards at all.

One thing to note is your credit card's interest rates. Most credit providers have their own set of interest rates, with a zero percent loan being the best option. If your card issuer doesn't have a zero percent interest rate, paying the balance right away will help lessen the interest.

Get Your Own Car Today


If you want to buy a vehicle but don’t want to spend too much on a brand-new car, buy a secondhand vehicle from a used car dealership. Aside from saving money, you also save yourself from worrying about the vehicle’s reliability, as it gets inspected before being sold. Contact Bravo’s Auto World in Cathedral City, CA to learn more about our financing options.