Cars: Why a Car Loan is Actually a Good Idea
When you’re thinking about taking out a car loan, some people might discourage you from doing it. However, you can tell them about all of these beneficial reasons for taking out a car loan.
A Safer Vehicle
As you are thinking about cars, safety is really the top priority. Since you travel in the vehicle every day to work or to school, you want to make sure that you are not driving in something that could literally cause serious injure or death to your being. By taking out a car loan, you will likely have enough money to get a safe car for yourself.
Better Work Experience
Another scenario that often results when people have bad cars is this: You are constantly having to call work and say you’ll be late because your car broke down once again. While employers are generally understand if this happens once in awhile, being late on a regular basis is absolutely grounds for dismissal from most positions.
Cost of Repairs vs. The Car Loan
Some people will argue that you should just continue to pay to repair your old car. However, this idea is not always the best away. Imagine that you are spending lots of money every couple of months or so to repair that old vehicle. Wouldn’t it be better to just put those funds toward a loan for a car that actually works and gives you less aggravation?
If you do not have a good car right now, you might save it only for work and school. As a result, you wind up missing out on a lot of social experiences and holidays. When you take out a car loan for a newer vehicle, no longer do you have to sit inside and watch the rest of the world have fun.
Building Your Credit
While one argument is that a car loan could hurt your credit, the other side is that it can actually help it. As long as you are paying back your loan on a regular basis, it should actually help to improve your credit scores. The next time you need to get approved for a loan or take out a credit card, you may be entitled to better interest rates as a result.
By browsing through all of the aforementioned arguments, you will start to see how smart of an idea a car loan actually is. You do not have to put yourself into a negative financial situation when you want to take out a car loan. In fact, in terms of saving money on repairs and in terms of building your credit score, you are actually creating a much more positive situation for yourself.
*This is a guest post by Jenny Jones. Jenny Jones has several years experience working for large companies such as Clydesdale Bank and if you would like to see more of Jenny’s work then check out Motoring Money or Frugal Plex for advice on saving money.
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