Which is better: Buy a car in cash or credit? This tells us the BCP bank

Which is better: Buy a car in cash or credit? This tells us the BCP bank

For BCP bank executive, it is best not borrow in dollars. If we buy a car it is better to purchase through a credit vehicular

Buying a car can be summed up in a chain of decisions. Once you have chosen the model and brand that we like and should last -this according to the need of each- touches us decide whether to fund cash or credit. This is where most of us tend to have more doubts than certainties. To help we will show you the most interesting points that were exposed at breakfast organized by the BCP bank.

Buy credit is cheaper than cash

Yes, this is how you read it. According to Daniel Lindley, area manager vehicular BCP credit, the car loans have lower rates of interest than other loans. The specialist recommends us to ask for financing to buy a car and that we allocate our savings into investments with profitability.

But that is not all. Vehicle depreciation is another point to be taken into account, the executive said BCP. "Shopping for a car spot is the worst decision because the vehicle is not an expense but an investment, it's like putting our money in a business that after five years will be worth almost half," he said.

Do not go into debt in dollars and analyzes the total cost of purchase

We know that most car loans are in dollars, however this scenario generates some drawbacks. For BCP bank executive, the main problem is the upward trend that has this currency. "The healthiest thing for people who want to buy a car on credit is to borrow in the same currency with which they pay his salary," he said.

Now, the "trick" to not end immersed in a debt we can not afford is to plan the total cost of the purchase. In the specific case of buying a new car, Daniel Lindley recommends us to analyze the following:

• The share of credit vehicular
• Car insurance
• The monthly consumption of gasoline
• Preventive maintenance vehicle
• The resale value of the car