Deciding how to pay for your next brand new car can be a big decision. Almost as big as choosing the vehicle itself. 

So, you’ve done your research, read the reviews and decided it’s time to buy your next brand new car. 

Because you’re some sort of financial savant, you’ve got the cash in the bank ready to go but that doesn’t mean you shouldn’t look into finance options. 

You might be surprised to learn that there are pros and cons of buying a new car with finance versus cash.

Pro 1: Buying a car with finance is just as simple and easy

Buying a car with finance can be as simple as one, two, three.

Requesting a quote from a broker can take a matter of minutes and gives you time to search CarExpert for the best deals on your brand new car.

After you’ve secured the best price on your new car, the broker will provide you with all the information regarding your finance loan which includes securing your competitive interest rate.

Once your vehicle is ready to be delivered, settlement will occur on your behalf leaving you to focus on driving away with a hassle free experience.

Pro 2: Your cash might work harder for you elsewhere

“Typically if you ask any good investor, your cash should be used to invest in appreciating assets, things that are going to make you money,” Head of Marketing at Stratton Finance, Chris Dimopoulos, told CarExpert.

“We love cars, but unfortunately they are the quickest depreciating asset that you'll ever own.”

Cars are a big purchase, and a savvy investor knows something like $30,000 cash could work harder for them in a safe investment – such as a home loan, or investing in the stock market.

For example, you could finance that $30,000 car and repay around $36,000 over five years with current interest rates. Or put the $30,000 into a deposit on a house, which is almost guaranteed to rise in value more than $6000 over the same term. 

You could put the $30,000 into an existing mortgage, if you have one, and save a considerable amount more than $6000 on home loan interest, and pay your mortgage off sooner.

Alternatively, you could use the cash to fund your next holiday, rather than potentially putting expenses on a credit card with a much higher interest rate. 

It’s worth noting, car loans typically offer lower interest rates than personal loans, too.

Pro: 3 You can claim some car loan expenses on tax

Buying your car for business use?

You may be able to claim tax deductions related to the loan itself, further sharpening the car finance option versus buying outright with cash – it’s best to check these benefits with your accountant before committing to financing your loan. 

Pro 4: Weigh up what’s right for you

Everything is different and finding what works best for you might not be what works for everyone else. 

Before committing to finance options it’s a good idea to contact your financial advisor or accountant to weigh your options. 

It’s also very important to note the relevant economic situation regarding interest rates including the benefits to keep the cash in the bank. 

If you are still unsure about what option is best for you, Stratton Finance will offer a quote and provide the relevant information so you can make an informed decision. 

Disclaimer: The information on this website is for general purposes only and not a substitute for professional financial advice. CarExpert recommends seeking independent legal, financial, taxation or other advice unique to your individual circumstances. is a Author at CarExpert.