When shopping for your future Toyota, you’ll have several ways to acquire it. Two of these on options are to buy or finance. There are advantages to both methods, so your choice comes down to preference and financial situation.

If you want to know the similarities and differences between buying and financing a Toyota, trust the Bill Penney Toyota team to inform you. Then, when you’re ready, contact us to take a test drive on the streets of Jasper, Birmingham, and Cullman, AL.

Benefits of Buying a Toyota

Buying a car is the way to go for drivers who can do so. Buying outright means you won’t take on any debt, so there will be no monthly car payment. After you make your payment, you’ll own the script car outright. This means you can customize it however you’d like. If you sell it, you won’t be responsible for paying off the remainder of a loan.

Lastly, purchasing a Toyota can be advantageous because you won’t have to worry about interest charges on an auto loan. Depending on loan terms, the interest can be high, meaning you’d spend more money to repay the loan.

Remember that paying cash does not affect your credit, and you can’t take advantage of dealer incentives.

Ways to Buy a Toyota

When buying a car, there are a few ways you can make your payment. Some dealerships may take cash. However, due to safety and convenience, you might want to consider a cashier’s check, personal check, or wire transfer.

Benefits of Financing a Toyota

There are many reasons drivers finance their vehicles, and financing a Toyota presents an excellent opportunity to set yourself up for financial flexibility and credit-building opportunities. A financed Toyota means you’ll take out a loan to pay for the car.

You’ll pay the loan back in monthly installments for several months. This means you can spread out the cost and manage your budget. Over time, you may be eligible to refinance the loan for a cheaper monthly payment and lower interest rate, which can help you save even more monthly.

When you take out an auto loan, you’re opening a new line of credit. If you make your monthly payments on time, you’ll positively impact your score. Because you’ll pay monthly installments instead of the entire cost upfront, you might qualify for a car with more features.

How to Finance a Toyota

Financing a Toyota can be a simple process. Working with our Toyota dealer means you can complete an application online or apply at the dealership, and our finance team will work with different lenders to build a plan that works for you.

You can also secure an auto loan from other institutions, such when as a bank or credit union.

Buying vs Financing a Toyota: Which is Right for Me?

Now that you know the pros and cons of buying vs financing a Toyota, which is right for you? If you have the cash on hand to pay the total cost of the car, an outright purchase could be a great option. If you want to build your credit and spread out the cost of the car, financing would be ideal.

Regardless of your decision, Bill Penney Toyota is here to set you up for on-road success in Jasper, Birmingham, and Cullman, AL. Contact us today to find your next set of wheels!