{"id":22365,"date":"2025-11-30T20:29:18","date_gmt":"2025-11-30T20:29:18","guid":{"rendered":"https:\/\/budgetadirect.com\/?p=22365"},"modified":"2025-11-30T20:29:20","modified_gmt":"2025-11-30T20:29:20","slug":"pros-and-cons-of-financing-a-car","status":"publish","type":"post","link":"https:\/\/budgetadirect.com\/?p=22365","title":{"rendered":"Pros And Cons Of Financing A Car"},"content":{"rendered":"<div xmlns:default=\"http:\/\/www.w3.org\/2000\/svg\">\n<div id=\"block_4ac2f59a2180ed6b7e6bb49c96d9018f\" class=\"key-takeaways sm:border-l-4 border-(--accent) sm:pl-8 my-8 relative\" style=\"--accent: var(--color-blue-medium)\">\n    <!-- htmlmin:ignore --><\/p>\n<h2 class=\"heading-4 mt-0 mb-4 text-crop-none max-sm:flex max-sm:items-center max-sm:gap-4\" id=\"key-takeaways\" data-position=\"0\" data-beam-element-viewed=\"\" data-id=\"br-h2-0-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Key takeaways\" data-outcome=\"\">\n    <span class=\"shrink-0\">Key takeaways<\/span><br \/>\n        <span class=\"max-sm:h-0.5 max-sm:w-full max-sm:w-full max-sm:bg-(--accent) max-sm:rounded-full max-sm:block\"\/><br \/>\n    <\/h2>\n<p>    <!-- htmlmin:ignore --><\/p>\n<ul class=\"flex flex-col text-gray-700 mb-0 gap-2 list-disc\">\n<li class=\"pl-4 relative marker:text-(--accent)\">\n                                                            An auto loan can make car ownership possible by spreading out the purchase cost over years. It can help you afford a more reliable vehicle and increase your credit score.\n                                                <\/li>\n<li class=\"pl-4 relative marker:text-(--accent)\">\n                                                            Auto loans also have their drawbacks, including high monthly payments, financial risk, vehicle depreciation and being stuck with an unsuitable vehicle until payoff.\n                                                <\/li>\n<li class=\"pl-4 relative marker:text-(--accent)\">\n                                                            You can also consider car loan alternatives, like leasing, using savings, tapping into your 401(k) or taking out a personal loan, although these options are not without risk.\n                                                <\/li>\n<\/ul>\n<\/div>\n<p>The pros and cons of financing a car are sometimes one in the same. You can spread the cost of an expensive vehicle over several years, but that means paying even more in interest.<\/p>\n<p>Consider that the average new car price continued its steady ascent in September 2025, checking in at $51,099, according to Kelley Blue Book. Plus, auto loan interest rates have remained elevated. <\/p>\n<p>Rising costs further complicate the question of whether to finance a car. To answer, review the total price tag of different purchase options to determine which is most cost effective for you.<\/p>\n<h2 id=\"pros-cons\" data-position=\"1\" data-beam-element-viewed=\"\" data-id=\"br-h2-1-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Pros and cons of financing a car: Overview\" data-outcome=\"\">Pros and cons of financing a car: Overview<\/h2>\n<div id=\"block_24a5ded73defe404e7ed3c495e502fab\" class=\"flex flex-col gap-8 my-6 not-wysiwyg\">\n<div class=\"ProsAndConsTable\">\n<div class=\"ProsAndConsItem\">\n<div class=\"ProsAndConsItem-headerContainer flex items-center gap-2\">\n<div><\/div>\n<p>            <!-- htmlmin:ignore --><\/p>\n<h3 class=\"ProsAndConsItem-header\">\n    Pros<br \/>\n    <\/h3>\n<p>    <!-- htmlmin:ignore -->\n        <\/div>\n<ul class=\"ProsAndConsItem-list\">\n<li>Spreads the expense over years<\/li>\n<li>May help you afford a more reliable or safer car<\/li>\n<li>Can help improve your credit score<\/li>\n<li>Allows you to focus on other financial goals<\/li>\n<\/ul><\/div>\n<div class=\"ProsAndConsItem\">\n<div class=\"ProsAndConsItem-headerContainer flex items-center gap-2\">\n<div>\n                <img decoding=\"async\" src=\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/06\/remove-circle.svg.svg+xml\" alt=\"Red circle with an X inside\"\/>\n            <\/div>\n<p>            <!-- htmlmin:ignore --><\/p>\n<h3 class=\"ProsAndConsItem-header\">\n    Cons<br \/>\n    <\/h3>\n<p>    <!-- htmlmin:ignore -->\n        <\/div>\n<ul class=\"ProsAndConsItem-list\">\n<li>Monthly payments might be expensive<\/li>\n<li>Risk of damage to finances<\/li>\n<li>The vehicle\u2019s value depreciates while you\u2019re still paying<\/li>\n<li>You\u2019ll be stuck with the same car for longer<\/li>\n<\/ul><\/div>\n<\/div><\/div>\n<div class=\"InlineCta not-wysiwyg my-12\">\n            <img decoding=\"async\" class=\"InlineCta-image\" src=\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/11\/GettyImages-2222036705.png\" alt=\"Car salesman showing a new car to a customer in a dealership.\"\/><\/p>\n<div class=\"InlineCta-body\">\n                    <!-- htmlmin:ignore --><\/p>\n<h3 class=\"InlineCta-title\">\n    The best auto loans of 2025<br \/>\n    <\/h3>\n<p>    <!-- htmlmin:ignore --><\/p>\n<p class=\"InlineCta-copy\">If financing your vehicle is the best fit, consider Bankrate&#8217;s picks for the best auto loan lenders.<\/p>\n<p>        Learn more<\/p><\/div>\n<\/div>\n<h2 id=\"benefits\" data-position=\"2\" data-beam-element-viewed=\"\" data-id=\"br-h2-2-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Benefits of taking out an auto loan\" data-outcome=\"\">Benefits of taking out an auto loan<\/h2>\n<h3>Spread out the expense<\/h3>\n<p>An auto loan makes car ownership possible if you don\u2019t have the sticker price saved up. Instead of paying one large sum, you can make smaller payments over time until owning the car outright.\u00a0<\/p>\n<p>Even if you have cash on hand for a car purchase, auto loans can allow you to use your savings for other purposes, such as high-interest debt repayment or retirement planning. After all, draining your savings to buy a car might leave you short elsewhere, such as being without an emergency fund.<\/p>\n<h3>Afford a more reliable car<\/h3>\n<p>It\u2019s possible to find an older, used vehicle that you can afford to pay for in cash, but a well-worn car is more likely to have higher maintenance costs and reliability issues. An auto loan could help you afford a newer vehicle in better shape \u2014 or even a higher-end option. Review your finances and calculate how much car you can afford before borrowing, so you don\u2019t take out a bigger loan than you can handle.<\/p>\n<div class=\"TipBox flex sm:items-center gap-6 sm:gap-7 md:gap-8 mx-2 sm:mx-8 mb-8\">\n    <default:svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"TipBox-icon Icon icon-offset-blue-200 text-gray-900 icon-highlight-blue-600 mt-4 sm:-mt-4 md:-mt-1\" viewbox=\"0 0 24 24\" fill=\"currentColor\" focusable=\"false\"><default:title>Lightbulb Icon<\/default:title><br \/>\n<default:path d=\"M10.725 18.804c.22 2.389 1.25 4.196 2.486 4.196 1.243 0 2.277-1.825 2.49-4.23a.66.66 0 0 0 .08-.318c0-.667.458-1.22 1.042-1.918l.013-.015c.787-.949 1.764-2.125 1.764-4.025C18.6 9.844 16.429 7 13.2 7c-3.23 0-5.4 2.837-5.4 5.486 0 1.918.979 3.105 1.768 4.056l.028.033c.563.683 1.007 1.221 1.022 1.885.003.13.042.247.107.344Z\" fill=\"transparent\" class=\"icon-offset\"\/><default:path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M12 4.386a.698.698 0 0 1-.692-.7V1.7c0-.385.311-.7.692-.7.38 0 .692.315.692.7v1.986c0 .385-.312.7-.692.7Zm-5.557 2.32h.005-.01.005Zm.489-.202a.674.674 0 0 1-.489.202.728.728 0 0 1-.488-.202l-1.384-1.4a.708.708 0 0 1 0-.988.689.689 0 0 1 .977 0l1.384 1.4a.708.708 0 0 1 0 .988Zm6.529 11.454c0 .385.311.7.692.7v.009c.38 0 .692-.315.692-.7 0-.718.501-1.313 1.141-2.065l.014-.016c.863-1.021 1.932-2.287 1.932-4.333 0-2.852-2.378-5.915-5.916-5.915-3.537 0-5.916 3.054-5.916 5.906 0 2.065 1.073 3.343 1.938 4.367l.03.036c.617.735 1.103 1.314 1.12 2.029.009.385.32.673.71.682.38-.009.674-.332.674-.717-.026-1.225-.761-2.1-1.479-2.95-.83-.98-1.609-1.907-1.609-3.455 0-2.18 1.825-4.507 4.532-4.507 2.708 0 4.533 2.337 4.533 4.515 0 1.526-.807 2.484-1.587 3.412l-.022.027-.008.01c-.724.854-1.471 1.736-1.471 2.965Zm-.008-4.051-.744.752v2.774c0 .385-.312.7-.692.7a.698.698 0 0 1-.692-.7v-2.774l-.796-.805a.708.708 0 0 1 0-.988.688.688 0 0 1 .978 0l.51.516.458-.464a.688.688 0 0 1 .978 0 .708.708 0 0 1 0 .989ZM2.192 12.322h1.955c.38 0 .692-.314.692-.7 0-.384-.312-.7-.692-.7H2.192a.698.698 0 0 0-.692.7c0 .386.311.7.692.7Zm11.84 8.252h-3.918a.698.698 0 0 1-.692-.7c0-.385.311-.7.692-.7h3.918c.38 0 .692.315.692.7 0 .385-.312.7-.692.7Zm-3 1.986h1.963c.38 0 .692-.315.692-.7 0-.385-.312-.7-.692-.7H11.03a.698.698 0 0 0-.692.7c0 .385.312.7.692.7Zm10.776-10.237h-1.955a.698.698 0 0 1-.692-.7c0-.385.312-.7.692-.7h1.955c.38 0 .692.315.692.7 0 .385-.311.7-.692.7Zm-4.259-5.617a.33.33 0 0 0 .003 0h-.008.005Zm-.49-.202c.138.13.31.2.49.202a.674.674 0 0 0 .488-.202l1.384-1.4a.708.708 0 0 0 0-.988.689.689 0 0 0-.978 0l-1.384 1.4a.708.708 0 0 0 0 .988Z\" class=\"icon-base\"\/><\/default:svg>    <\/p>\n<p class=\"w-full mb-0\">\n        <strong class=\"font-bold\"><br \/>\n            Bankrate\u2019s take:<br \/>\n        <\/strong><br \/>\n        While you can get behind the wheel of a nicer car, beware of overspending. Experts recommend spending no more than 20 percent of your take-home pay on all car-related expenses, including your loan, insurance, gas and maintenance.\n    <\/p>\n<\/div>\n<h3>Improve your credit score<\/h3>\n<p>Your payment history makes up 35 percent of your FICO Score. If you can keep up with your auto loan payment each month, your credit score should increase over the loan\u2019s term. Your credit mix \u2014 the different types of credit you have \u2014 also plays a small role in your credit score. Adding an auto loan can diversify your credit mix and slightly boost your score.<\/p>\n<p>But remember: Missed payments can damage your score.<\/p>\n<h3>Maintains savings balances<\/h3>\n<p>Paying cash for a car can deplete your savings, but taking out an affordable car loan allows you to leave your money in savings or investment accounts, where it can earn interest. You can also maintain progress on other financial goals, like paying off credit cards or saving for a vacation while paying for your car.<\/p>\n<blockquote class=\"pull-quote PullQuote PullQuote--very-long\">\n<p class=\"pull-quote__copy PullQuote-copy font-bold\">I bought a new car in February 2025, and although I could afford to buy it with cash, I opted instead to make a sizable down payment and borrow an auto loan for the remainder. Maintaining easy access to cash for emergencies was important to me \u2014 I didn\u2019t want to drain my savings and expose myself to risk on a future rainy day.<\/p>\n<p>            <cite class=\"pull-quote__cite PullQuote-cite\">\u2014 Katie Lowery<\/cite><br \/>\n                <span class=\"text-xs\">Bankrate Loans editor<\/span>\n    <\/p><\/blockquote>\n<h2 id=\"drawbacks\" data-position=\"3\" data-beam-element-viewed=\"\" data-id=\"br-h2-3-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Drawbacks of taking out an auto loan\" data-outcome=\"\">Drawbacks of taking out an auto loan<\/h2>\n<h3>Monthly payments can be expensive<\/h3>\n<p>Even if you qualify for a competitive auto loan, squeezing a high monthly payment into your budget can be a challenge. You might be forced to sacrifice other categories of your budget to help repay your debt. Plus, you could find yourself at risk of falling behind in repayment if you suddenly lose some or all of your income.<\/p>\n<p>Consider that the average monthly car payment for new vehicles was $749 in the second quarter of 2025, according to Experian. And this high cost doesn\u2019t account for the average cost of car insurance, which is $2,671 annually.<\/p>\n<h3>Risk of damaging your finances<\/h3>\n<p>Falling behind on your auto loan payments will lead to trouble. Even one missed payment will affect your credit score, and multiple missed payments can lead to your vehicle being repossessed.<\/p>\n<p>This is because, for most auto loans, your vehicle serves as collateral for the loan. Until you\u2019ve paid off the loan in full, the lender still owns the vehicle \u2014 and if you don\u2019t make the payments, the lender will repossess it to recoup its losses. But even if you choose an unsecured auto loan, you could be taken to court for missed payments.<\/p>\n<h3>Your vehicle\u2019s value depreciates<\/h3>\n<p>Your vehicle\u2019s value will depreciate the moment you drive off the lot. Cars can lose as much as 20 percent of their value in the first year alone, and there will likely be a steady decline in value over time.<\/p>\n<p>If you have a high interest rate, you could owe more than your car is worth and end up upside-down on your loan. This means that you can\u2019t sell the car unless you have enough savings to make up the difference. It could also cause problems if you get into an accident and total the car. If you don\u2019t have a policy that pays off the full amount of your loan (like gap insurance), your insurance payment likely won\u2019t be enough to replace your vehicle.<\/p>\n<h3>Stuck with the same car for longer<\/h3>\n<p>When you borrow an auto loan to buy a car, you\u2019re typically on the hook for keeping the car until the loan is paid off. Sure, you can trade it in or sell a car with a loan, but it can be complicated. These days, long loans are the norm, with the average auto loan for a new car lasting 68.87 months (or more than five and a half years), according to Experian.<\/p>\n<p>If you think you\u2019ll want a different car in a year or two, consider whether car leasing is a better option for you.<\/p>\n<h2 id=\"should\" data-position=\"4\" data-beam-element-viewed=\"\" data-id=\"br-h2-4-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Questions to ask before financing a car\" data-outcome=\"\">Questions to ask before financing a car<\/h2>\n<p>Financing a car can be a good move if you don\u2019t have the cash to cover the cost of a vehicle or if you want to use your savings for other financial goals. However, the trade-off is that you\u2019ll pay more in interest and be locked into a loan for an extended amount of time.<\/p>\n<p>To compare the pros and cons of auto loans, answer some questions about your finances and your needs for the vehicle.<\/p>\n<ul class=\"wp-block-list\">\n<li>\n<strong>What can I afford?<\/strong> Unless you can afford to buy your dream car with cash, an auto loan is the most effective way to get a vehicle. Use an auto loan calculator to estimate your expected monthly cost and ensure you can afford it.<\/li>\n<li>\n<strong>Do I need to build my credit?<\/strong> Your eligibility and loan terms depend on your credit score. If you have excellent credit, you may qualify for a low rate and large amount \u2014 but with bad credit, you may struggle to qualify at all. Before applying, take steps to improve your credit if necessary.<\/li>\n<li>\n<strong>How long do I want this vehicle?<\/strong> Auto loans commonly last between 36 and 84 months, and at the end of your loan term, the vehicle is yours. If you intend to swap cars frequently, leasing may be a better option.<\/li>\n<\/ul>\n<h2 id=\"alternatives\" data-position=\"5\" data-beam-element-viewed=\"\" data-id=\"br-h2-5-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Alternatives to auto loans\" data-outcome=\"\">Alternatives to auto loans<\/h2>\n<p>An auto loan is not your only option. There are alternative financing options that may be a better fit for your budget.<\/p>\n<ul class=\"wp-block-list\">\n<li>\n<strong>Personal loan:<\/strong> You can use an unsecured personal loan to buy a car, though you may face higher interest rates. The upside is that you won\u2019t have a lien on your vehicle, so you won\u2019t risk having your car repossessed if you\u2019re unable to make payments.<\/li>\n<li>\n<strong>Leasing:<\/strong> Many consider leasing versus buying when looking into newer vehicles. While leasing can put you behind the wheel at a lower monthly cost, you won\u2019t own your vehicle at the end of the lease term unless you choose to buy out your lease.<\/li>\n<li>\n<strong>Paying in cash: <\/strong>Buying your car outright can be a great financial decision as long as you don\u2019t deplete your savings or leave yourself financially vulnerable. The benefits include avoiding loan payments, interest and fees. Plus, paying cash puts you in a strong position to negotiate with a dealership or private seller, and it could speed up the sales process.<\/li>\n<\/ul>\n<h2 data-position=\"6\" data-beam-element-viewed=\"\" data-id=\"br-h2-6-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Explore more auto loan content on Bankrate\" data-outcome=\"\">Explore more auto loan content on Bankrate<\/h2>\n<h2 data-position=\"7\" data-beam-element-viewed=\"\" data-id=\"br-h2-7-onpage-placement\" data-type=\"h2\" data-location=\"Editorial\" data-name=\"h2_all\" data-text=\"Bottom line\" data-outcome=\"\">Bottom line<\/h2>\n<p>Deciding whether an auto loan is right for you depends on your financial situation and how long you want the vehicle. Crunch the numbers to determine how much you\u2019ll pay over the life of an auto loan to determine whether paying cash is the smarter choice. Then decide whether you\u2019ll have enough in savings to cover emergencies if you buy your car with cash.<\/p>\n<p>If you find that vehicle financing is the best approach, take the time to research auto loan offers from several different lenders. Do your homework by learning how to get the best auto loan rate.<\/p>\n<div class=\"HelpfulCTA mx-auto flex flex-col items-center gap-6 my-6 py-12 text-base border-y border-gray-200\" data-helpful-cta=\"\" data-beam-element-viewed=\"\" id=\"did-you-find-this-helpful\" data-type=\"cta\" data-location=\"article-bottom\" data-position=\"banner\" data-text=\"Did you find this page helpful?\">\n<div class=\"HelpfulCTA-initial w-full flex flex-col items-center gap-4\" data-cta-initial=\"\">\n<div class=\"HelpfulCTA-question text-lg font-bold text-center text-gray-900\">\n            Did you find this page helpful?<\/p>\n<div id=\"dgQ4ucJfLc\" class=\"hidden\">\n<div class=\"wysiwyg wysiwyg--sm wysiwyg--flush max-w-xs\">\n<p class=\"mb-6 text-base\">\n                            <strong class=\"block font-bold text-gray-900\">Why we ask for feedback<\/strong><br \/>\n                            Your feedback helps us improve our content and services. It takes less than a minute to<br \/>\n                            complete.\n                        <\/p>\n<p>Your responses are anonymous and will only be used for improving our website.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>Help us improve our content<\/p>\n<div class=\"HelpfulCTA-actions flex gap-4 mt-2\">\n            <button type=\"button\" class=\"HelpfulCTA-btn HelpfulCTA-btn--yes border border-2 border-blue-600 text-blue-600 rounded px-6 py-2 transition font-semibold flex items-center gap-2 hover:bg-blue-50\" data-cta-yes=\"\" data-beam-element-clicked=\"\" id=\"did-you-find-this-helpful-yes\" data-type=\"button\" data-location=\"article-bottom\" data-position=\"banner\" data-text=\"Yes\" data-outcome=\"response submitted\"><br \/>\n                <span class=\"Icon\"><default:svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"Icon-glyph\" viewbox=\"0 0 24 24\" fill=\"currentColor\" focusable=\"false\"><default:title>Thumbs Up Icon<\/default:title><default:path d=\"M13.165 2.175c.322 0 .57.022.774.065.796.161 1.43.624 1.85 1.345.71 1.216.722 3.067.023 5.499h.516c2.28 0 3.422 0 4.337.548a3.844 3.844 0 0 1 1.721 2.25c.29 1.032 0 2.13-.592 4.336l-.516 1.926c-.312 1.151-.484 1.786-.882 2.324a3.368 3.368 0 0 1-1.442 1.098c-.625.247-1.28.248-2.475.248l-.021.01h-4.595c-.42 0-.636 0-.84-.032a4.19 4.19 0 0 1-.635-.15c-.204-.065-.387-.162-.763-.355l-1.69-.856c-.014.034-.026.069-.043.102a2.334 2.334 0 0 1-1.044 1.044c-.495.247-1.012.248-1.948.248h-.161c-.936 0-1.453 0-1.947-.248a2.333 2.333 0 0 1-1.044-1.044C1.5 20.038 1.5 19.52 1.5 18.585v-7.683c0-.936 0-1.452.248-1.947A2.387 2.387 0 0 1 2.792 7.91c.494-.248 1.01-.247 1.947-.247h.16c.937 0 1.454 0 1.95.247.353.177.653.44.875.763.64-.606 1.788-2.184 3.31-5.142.183-.366.312-.603.538-.819.193-.193.462-.355.72-.441.302-.097.539-.097.873-.097ZM4.739 9.288c-.624 0-1.076 0-1.227.076a.721.721 0 0 0-.323.322c-.075.15-.075.603-.075 1.216v7.683c0 .624 0 1.076.075 1.227.065.14.183.248.323.323.151.075.603.075 1.227.075h.16c.625 0 1.078 0 1.228-.075a.722.722 0 0 0 .323-.323c.075-.15.075-.603.075-1.227v-7.683c0-.624 0-1.065-.075-1.227a.672.672 0 0 0-.323-.322c-.15-.075-.603-.076-1.227-.076h-.161v.01ZM13.057 3.8c-.14 0-.226 0-.259.011-.032 0-.086.043-.107.064a2.98 2.98 0 0 0-.226.399c-2.187 4.272-3.53 5.647-4.33 6.092.003.162.004.34.004.536v7.82l2.217 1.122c.28.14.42.216.56.27.107.032.214.064.332.075.151.021.314.021.626.021h4.594c1.022 0 1.539 0 1.862-.129a1.84 1.84 0 0 0 .763-.58c.215-.28.355-.808.613-1.765l.517-1.927c.495-1.85.775-2.873.603-3.475a2.309 2.309 0 0 0-1-1.313c-.538-.323-1.594-.323-3.51-.323h-1.129c-.226 0-.473 0-.72-.15a1.087 1.087 0 0 1-.464-.614c-.075-.301 0-.528.076-.754.957-2.97.603-4.26.301-4.777-.183-.312-.44-.506-.774-.57-.14-.033-.377-.033-.549-.033Z\" class=\"icon-base\"\/><\/default:svg><\/span> <span class=\"text-base leading-4\">Yes<\/span><br \/>\n            <\/button><br \/>\n            <button type=\"button\" class=\"HelpfulCTA-btn HelpfulCTA-btn--no border-2 border-blue-600 text-blue-600 rounded px-6 py-2 transition font-semibold flex items-center gap-2 hover:bg-blue-50\" data-cta-no=\"\" data-beam-element-clicked=\"\" id=\"did-you-find-this-helpful-no\" data-type=\"button\" data-location=\"article-bottom\" data-position=\"banner\" data-text=\"No\" data-outcome=\"response submitted\"><br \/>\n                <span class=\"Icon\"><default:svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"Icon-glyph\" viewbox=\"0 0 24 24\" fill=\"currentColor\" focusable=\"false\"><default:title>Thumbs Down Icon<\/default:title><default:path d=\"M19.26 2.175c.936 0 1.454 0 1.949.247.452.226.818.592 1.044 1.043.247.495.248 1.012.248 1.948v7.678c0 .936 0 1.453-.248 1.948a2.333 2.333 0 0 1-1.044 1.042c-.495.248-1.013.248-1.95.248h-.16c-.937 0-1.454 0-1.95-.248a2.33 2.33 0 0 1-.885-.777c-.637.596-1.79 2.176-3.314 5.155-.183.365-.312.602-.538.828a1.924 1.924 0 0 1-.722.441c-.258.086-.484.097-.742.097l.022-.011a5.39 5.39 0 0 1-.905-.064 2.741 2.741 0 0 1-1.852-1.345c-.71-1.216-.721-3.066-.022-5.496h-.516c-2.283 0-3.424 0-4.34-.548a3.843 3.843 0 0 1-1.722-2.248c-.29-1.033 0-2.13.593-4.324l.517-1.925c.312-1.162.484-1.786.882-2.323.377-.495.872-.871 1.443-1.097.624-.248 1.281-.248 2.476-.248h4.597c.42 0 .635 0 .84.032.215.032.431.086.636.15.193.065.387.162.753.345l1.702.864c.017-.04.033-.082.053-.122a2.333 2.333 0 0 1 1.044-1.043c.496-.247 1.013-.247 1.95-.247h.16ZM7.503 3.798c-1.022 0-1.54 0-1.862.13-.302.118-.56.322-.765.58-.215.28-.345.775-.614 1.753l-.517 1.926c-.495 1.85-.775 2.871-.602 3.474a2.308 2.308 0 0 0 1 1.312c.539.323 1.594.322 3.51.322h1.142c.236 0 .473 0 .72.15.227.14.388.367.453.625.075.28 0 .516-.075.742-.959 2.969-.603 4.27-.301 4.775.183.312.44.506.774.57.162.033.41.033.572.033.128 0 .203 0 .236-.01.021 0 .085-.044.107-.065.032-.032.14-.237.227-.399 2.208-4.308 3.556-5.671 4.352-6.102a39.945 39.945 0 0 1-.003-.523v-7.79L13.63 4.175c-.28-.14-.41-.215-.56-.27a1.796 1.796 0 0 0-.344-.085c-.151-.022-.313-.01-.625-.022H7.503Zm11.596.001c-.625 0-1.077 0-1.228.076a.72.72 0 0 0-.323.322c-.075.15-.075.603-.075 1.226v7.68c0 .623 0 1.075.075 1.226.075.14.183.247.323.322.15.075.603.075 1.228.075h.16c.625 0 1.078 0 1.228-.075a.778.778 0 0 0 .324-.322c.075-.151.075-.603.075-1.227V5.423c0-.623 0-1.076-.075-1.226a.722.722 0 0 0-.324-.322c-.15-.076-.603-.076-1.227-.076h-.161Z\" class=\"icon-base\"\/><\/default:svg><\/span> <span class=\"text-base leading-4\">No<\/span><br \/>\n            <\/button>\n        <\/div>\n<\/p><\/div>\n<p>    <!-- Yes Form --><\/p>\n<p>    <!-- No Form --><\/p>\n<div class=\"HelpfulCTA-thankyou flex flex-col items-center gap-2\" data-cta-thankyou=\"\" style=\"display:none;\">\n<p>Thank you for your<br \/>\n            feedback!<\/p>\n<p>Your input helps us improve our<br \/>\n            content and services.<\/p>\n<\/p><\/div>\n<\/div><\/div>\n<p>Read the full article <a href=\"https:\/\/www.bankrate.com\/loans\/auto-loans\/auto-loan-pros-and-cons\/\" target=\"_blank\" rel=\"noopener\" rel=\"nofollow\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key takeaways An auto loan can make car ownership possible by spreading out the purchase cost over years. It can help you afford a more reliable vehicle and increase your credit score. Auto loans also have their drawbacks, including high monthly payments, financial risk, vehicle depreciation and being stuck with an unsuitable vehicle until payoff.<\/p>\n","protected":false},"author":1,"featured_media":22366,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[58],"tags":[],"class_list":{"0":"post-22365","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-homes"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Pros And Cons Of Financing A Car | BudgetADirect<\/title>\n<meta name=\"description\" content=\"Key takeaways An auto loan can make car ownership possible by spreading out the purchase cost over years. It can help you afford a more reliable vehicle\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/budgetadirect.com\/?p=22365\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pros And Cons Of Financing A Car | BudgetADirect\" \/>\n<meta property=\"og:description\" content=\"Key takeaways An auto loan can make car ownership possible by spreading out the purchase cost over years. It can help you afford a more reliable vehicle\" \/>\n<meta property=\"og:url\" content=\"https:\/\/budgetadirect.com\/?p=22365\" \/>\n<meta property=\"og:site_name\" content=\"BudgetADirect\" \/>\n<meta property=\"article:published_time\" content=\"2025-11-30T20:29:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-11-30T20:29:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/11\/auto-loan-pros-and-cons.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/budgetadirect.com\/?p=22365#article\",\"isPartOf\":{\"@id\":\"https:\/\/budgetadirect.com\/?p=22365\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/budgetadirect.com\/#\/schema\/person\/60f83002f7bcaf7b883198f8da222a50\"},\"headline\":\"Pros And Cons Of Financing A Car\",\"datePublished\":\"2025-11-30T20:29:18+00:00\",\"dateModified\":\"2025-11-30T20:29:20+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/budgetadirect.com\/?p=22365\"},\"wordCount\":1734,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/budgetadirect.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/budgetadirect.com\/?p=22365#primaryimage\"},\"thumbnailUrl\":\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/11\/auto-loan-pros-and-cons.jpg\",\"articleSection\":[\"Homes\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/budgetadirect.com\/?p=22365#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/budgetadirect.com\/?p=22365\",\"url\":\"https:\/\/budgetadirect.com\/?p=22365\",\"name\":\"Pros And Cons Of Financing A Car | BudgetADirect\",\"isPartOf\":{\"@id\":\"https:\/\/budgetadirect.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/budgetadirect.com\/?p=22365#primaryimage\"},\"image\":{\"@id\":\"https:\/\/budgetadirect.com\/?p=22365#primaryimage\"},\"thumbnailUrl\":\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/11\/auto-loan-pros-and-cons.jpg\",\"datePublished\":\"2025-11-30T20:29:18+00:00\",\"dateModified\":\"2025-11-30T20:29:20+00:00\",\"description\":\"Key takeaways An auto loan can make car ownership possible by spreading out the purchase cost over years. It can help you afford a more reliable vehicle\",\"breadcrumb\":{\"@id\":\"https:\/\/budgetadirect.com\/?p=22365#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/budgetadirect.com\/?p=22365\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/budgetadirect.com\/?p=22365#primaryimage\",\"url\":\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/11\/auto-loan-pros-and-cons.jpg\",\"contentUrl\":\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/11\/auto-loan-pros-and-cons.jpg\",\"width\":1280,\"height\":720},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/budgetadirect.com\/?p=22365#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/budgetadirect.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Pros And Cons Of Financing A Car\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/budgetadirect.com\/#website\",\"url\":\"https:\/\/budgetadirect.com\/\",\"name\":\"BudgetADirect\",\"description\":\"Latest Personal Finance News and Updates\",\"publisher\":{\"@id\":\"https:\/\/budgetadirect.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/budgetadirect.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/budgetadirect.com\/#organization\",\"name\":\"BudgetADirect\",\"url\":\"https:\/\/budgetadirect.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/budgetadirect.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2024\/03\/d-icon.png\",\"contentUrl\":\"https:\/\/budgetadirect.com\/wp-content\/uploads\/2024\/03\/d-icon.png\",\"width\":512,\"height\":512,\"caption\":\"BudgetADirect\"},\"image\":{\"@id\":\"https:\/\/budgetadirect.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/budgetadirect.com\/#\/schema\/person\/60f83002f7bcaf7b883198f8da222a50\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/budgetadirect.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/1afc2a88d343f74495db9a6a6ab9121bdc256a1100a11173bc6d587e4613fb13?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/1afc2a88d343f74495db9a6a6ab9121bdc256a1100a11173bc6d587e4613fb13?s=96&d=mm&r=g\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/budgetadirect.com\"],\"url\":\"https:\/\/budgetadirect.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Pros And Cons Of Financing A Car | BudgetADirect","description":"Key takeaways An auto loan can make car ownership possible by spreading out the purchase cost over years. It can help you afford a more reliable vehicle","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/budgetadirect.com\/?p=22365","og_locale":"en_US","og_type":"article","og_title":"Pros And Cons Of Financing A Car | BudgetADirect","og_description":"Key takeaways An auto loan can make car ownership possible by spreading out the purchase cost over years. It can help you afford a more reliable vehicle","og_url":"https:\/\/budgetadirect.com\/?p=22365","og_site_name":"BudgetADirect","article_published_time":"2025-11-30T20:29:18+00:00","article_modified_time":"2025-11-30T20:29:20+00:00","og_image":[{"width":1280,"height":720,"url":"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/11\/auto-loan-pros-and-cons.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"9 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/budgetadirect.com\/?p=22365#article","isPartOf":{"@id":"https:\/\/budgetadirect.com\/?p=22365"},"author":{"name":"News Room","@id":"https:\/\/budgetadirect.com\/#\/schema\/person\/60f83002f7bcaf7b883198f8da222a50"},"headline":"Pros And Cons Of Financing A Car","datePublished":"2025-11-30T20:29:18+00:00","dateModified":"2025-11-30T20:29:20+00:00","mainEntityOfPage":{"@id":"https:\/\/budgetadirect.com\/?p=22365"},"wordCount":1734,"commentCount":0,"publisher":{"@id":"https:\/\/budgetadirect.com\/#organization"},"image":{"@id":"https:\/\/budgetadirect.com\/?p=22365#primaryimage"},"thumbnailUrl":"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/11\/auto-loan-pros-and-cons.jpg","articleSection":["Homes"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/budgetadirect.com\/?p=22365#respond"]}]},{"@type":"WebPage","@id":"https:\/\/budgetadirect.com\/?p=22365","url":"https:\/\/budgetadirect.com\/?p=22365","name":"Pros And Cons Of Financing A Car | BudgetADirect","isPartOf":{"@id":"https:\/\/budgetadirect.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/budgetadirect.com\/?p=22365#primaryimage"},"image":{"@id":"https:\/\/budgetadirect.com\/?p=22365#primaryimage"},"thumbnailUrl":"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/11\/auto-loan-pros-and-cons.jpg","datePublished":"2025-11-30T20:29:18+00:00","dateModified":"2025-11-30T20:29:20+00:00","description":"Key takeaways An auto loan can make car ownership possible by spreading out the purchase cost over years. It can help you afford a more reliable vehicle","breadcrumb":{"@id":"https:\/\/budgetadirect.com\/?p=22365#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/budgetadirect.com\/?p=22365"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/budgetadirect.com\/?p=22365#primaryimage","url":"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/11\/auto-loan-pros-and-cons.jpg","contentUrl":"https:\/\/budgetadirect.com\/wp-content\/uploads\/2025\/11\/auto-loan-pros-and-cons.jpg","width":1280,"height":720},{"@type":"BreadcrumbList","@id":"https:\/\/budgetadirect.com\/?p=22365#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/budgetadirect.com\/"},{"@type":"ListItem","position":2,"name":"Pros And Cons Of Financing A Car"}]},{"@type":"WebSite","@id":"https:\/\/budgetadirect.com\/#website","url":"https:\/\/budgetadirect.com\/","name":"BudgetADirect","description":"Latest Personal Finance News and Updates","publisher":{"@id":"https:\/\/budgetadirect.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/budgetadirect.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/budgetadirect.com\/#organization","name":"BudgetADirect","url":"https:\/\/budgetadirect.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/budgetadirect.com\/#\/schema\/logo\/image\/","url":"https:\/\/budgetadirect.com\/wp-content\/uploads\/2024\/03\/d-icon.png","contentUrl":"https:\/\/budgetadirect.com\/wp-content\/uploads\/2024\/03\/d-icon.png","width":512,"height":512,"caption":"BudgetADirect"},"image":{"@id":"https:\/\/budgetadirect.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/budgetadirect.com\/#\/schema\/person\/60f83002f7bcaf7b883198f8da222a50","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/budgetadirect.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/1afc2a88d343f74495db9a6a6ab9121bdc256a1100a11173bc6d587e4613fb13?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1afc2a88d343f74495db9a6a6ab9121bdc256a1100a11173bc6d587e4613fb13?s=96&d=mm&r=g","caption":"News Room"},"sameAs":["https:\/\/budgetadirect.com"],"url":"https:\/\/budgetadirect.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/budgetadirect.com\/index.php?rest_route=\/wp\/v2\/posts\/22365","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/budgetadirect.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/budgetadirect.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/budgetadirect.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/budgetadirect.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22365"}],"version-history":[{"count":1,"href":"https:\/\/budgetadirect.com\/index.php?rest_route=\/wp\/v2\/posts\/22365\/revisions"}],"predecessor-version":[{"id":22367,"href":"https:\/\/budgetadirect.com\/index.php?rest_route=\/wp\/v2\/posts\/22365\/revisions\/22367"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/budgetadirect.com\/index.php?rest_route=\/wp\/v2\/media\/22366"}],"wp:attachment":[{"href":"https:\/\/budgetadirect.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/budgetadirect.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/budgetadirect.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}