You may have been given the following advice if you have bad credit: Buy a car in cash. That way you don't have any debt, and you don't have to worry about sky-high financing rates. But is this good advice?
That depends.
It's true that if your credit score is low, chances are you'll have to pay more in interest if you take out a car loan. Depending on the size of the loan you need, this can potentially add thousands of dollars to the total price you'll pay for the car.
On the other hand, the only way to rebuild your credit score is to continue using credit. If you have enough cash to purchase a vehicle outright, instead put that cash toward a large down payment. Put enough down that the monthly payment on your auto loan is affordable, even with the high interest rate.
Only do this if you know you can re-pay the loan.
Paying for a car in cash will not improve your credit score, but it won't harm it, either. Choose the option that makes the most sense for you. Rountree-Moore Ford Lincoln will be here to help, whichever way you decide.