Thinking about buying a car? Experts tell you why to acquire it for financing

Is the car a luxury or a necessity? That depends on many factors, but, if you analyzed your economic situation and think that buying a car is the best thing, in DEBATE we will tell you the opinion of experts on the eternal question: Is it better to purchase it in cash or through automotive financing?

The Mexican economic situation and the automotive market at this time do generate good conditions to buy a car with self-financing according to Guillermo Rosales Zárate, President of the Mexican Association of Automotive Distributors (AMDA).

He explained that it is a good time to take advantage of the installment payments of up to six yearsDepending on the brand of the car, in addition, those people who cannot obtain a bank loan could opt for this possibility. Generally the interest rate is higherbut the requirements and obstacles are fewer, in simple words, it is easier to ‘win’.

“There are terms to repay a loan that reach up to six years, and those who do not have the opportunity to obtain a traditional loan have the option of self-financing,” he said.

Why buy a car on credit?

One of the reasons why the AMDA leader considers that June 2024 is a good time for a car loanz is related to the fact that, in his words, the national economy is in the process of recovery, with more employment opportunities and improved salaries.

“We closed the first five months with a growth of 12.7%. There continues to be appetite in financing requests, which advance close to 20% in the first quarter. Consumer confidence in the annualized reference also continues to show good signs,” he said about car sales according to UnoTV.

On the other hand, the Gearshift 2023 Study, presented at the ‘Self-financing 2024, potential in action’ forum, by Juan Carlos Larios, Automotive Industry leader for Google Mexico, found that auto financing is on the rise.

More security?

Another point that you should consider if you want to purchase a new or used vehicle is the security that the seller can offer you, that is, that he is not a potential scammer.

One of the best options, according to the BBVA bank article, titled ‘Buying a car with bank credit is safer and avoids fraud’, are the established automotive agencies. They provide greater certainty that the unit is not stolen and that it has all the papers in order.

“Although you may think that it is more complicated to acquire a car through an agency, it is quite the opposite, since in the case of used cars, the legal status of the units for sale is verified.”

The article also points out an advantage that we already mentioned before. The agencies give the opportunity to request “bank financing options that are safer and easier to use.”

It is not the only option

Now is the time to reflect again, is it really Is it worth buying a car on credit or would I be better off saving? for a used or new one, but in cash?

That depends on your financial situation. Never go into debt if you do not have the real financial capacity to make the monthly payments. There are other expenses that are more important. Consider them.

I am Juan Pablo Chaidez Aispuro, a graduate in journalism from the UAS who life led me to specialize in content creation to generate traffic on different channels. Since I was a child I had a taste for the news and being informed; today, I consider myself more of a publicist. I gained some experience in the Noroeste sports area and as a radio reporter at Informativo Puro Sinaloa. In 2020 I joined the ranks of DEBATE, months later I became a Web Editor at Debate.com.mx. I am a learner and passionate about music, I am also fascinated by photography, travel, gastronomy, technology, astronomy, multiplatform content creation and helping whoever possible with my work. I always have my sights set on the highest, but family and real friends come first.

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