It may seem impossible for someone to do this, but if we talk about figures you would be surprised. And is that 28% of people who choose to buy a new car and access a vehicle credit for it, ends up paying the initial with the cash provision of their cards.
Using this money from your card seems like an easy way to get the initial percentage requested by the dealers, but it is not recommended. And he meditates a little! Now you will not only pay the vehicle credit of your car, but also the loan of your card and let’s be honest! The interest of this “benefit” is very high. Learn more in this note.
Why not use the cash provision ?:
For the interest rate
The interest of the cash provision is not low. As with the consumer credit you can end up paying not 50% more, but up to 70% or 100% more of the initial amount. And it goes without saying if for some reason you are late in your payments. The default will be unpayable!
Some people even use this type of credit to pay a car in cash. This is also not recommended and is that if they are going to use the cash provision to complete the money they lack, it will always be better to opt for a vehicle loan or even a personal loan.
Because a car is a valuable asset
If a car is a good that is devalued since leaving the dealership, why pay more for it? When paying for a car using the cash provision you are only increasing the initial price without increasing the value of the vehicle: only your debt.
Because it is not the only expense you will have
When you buy a new car you not only pay the credit if you take it out through a bank, you also pay the insurance , among other expenses. So why add to all this the debt of using the cash provision? Do not even think about it! It will always be better to save a little more, to be able to pay the initial, than to owe yourself too much to hurry.