Consider how you would Finance a Used Car
It takes some form of revenue to either build up cash or to build up credit. These are a couple of things which are ultimately required in order to purchase a used car. The lender needs to be protected against any default on the buyer’s part therefore a decent credit history is often a requirement as well. This is understandable from the lender’s point of view. In other words they will lend money to those who are most likely to pay it back. Even if the purchase is for cars under 5000 dollars, the lender still need to have a safety system in place. As for the cash options, if someone has revenue coming in from a steady job, then they are far more likely to be able to simply pay cash for the car. Of course this is only for cars under 5000 and even then it is still considered to be a lot of money. If you looked closely at the numbers you would see that by paying cash you would save a huge amount over the course of what would have been the loan term. This is not for everyone but it is something to think about.
