An auto loan is basically a loan that you take out in order to purchase a vehicle. With an auto loan, you are not paying on the depreciation of the vehicle like you do with a lease. You are paying on the vehicle purchase price plus interest.
Knowing this, are you still trying to decide if buying a car is right for you? Here are some factors that may help you make your decision.
Buying a vehicle may be right for you if:
- You have the money to make a significant down payment (20% or more)
- You prefer to own your vehicle
- You like to travel and don’t want to have to worry about mileage restrictions
- You are tough on your vehicles and don’t want to worry about wear and tear charges
- You don’t need to switch cars every two or three years