Dye Autos Denver Area Truck and Automotive Blog

Paying Cash vs Financing a Car: Which is Better?

By Dye Autos / March 1, 2018 / Comments Off on Paying Cash vs Financing a Car: Which is Better?

paying-cash-vs-financing-car-better-1It’s time for you to get a new car or truck, and you’re weighing your financing options. It seems like such a simple decision. If you have enough money to pay cash for a new car, should you do it? While that can be a smart choice, it’s not always the right option. Here are the pros and cons of paying cash vs financing a car.

Before we get into the question of cash versus financing, a little background is in order for car shoppers who haven’t had much experience buying a new car.

If that sounds like you, here’s the deal: When it comes to buying a car or truck, you generally have two ways to go. You can either finance the car, which means you pay it off over time, or you can pay cash, which means you buy the vehicle outright as if you’re picking up a new pair of sneakers at the store and handing the clerk your debit card.

The advantage to financing is that you’ll usually end up with a better car than if you’re paying with cash. How? Here’s why.

Let’s say your car budget is $8,000. You can buy a used car if you pay in full. However, if you use that $8,000 as a down payment on a new car, you can expand your automotive horizons greatly. If you have good credit, you can easily afford many new models.

The drawback is that you’ll need to make monthly payments in order to pay off the loan that allowed you to buy the newer, more expensive vehicle. Included in those payments is interest, which is a fee you pay the bank for allowing you to borrow the money in the first place.

Cash isn’t necessarily better.

Buying a car with cash is generally preferable to financing, but there are many situations in which that’s not the case.

Most people don’t have cash to spend on a car. If you’re like many Americans, there’s never enough cash on hand to layout on a car or truck. If you have good credit, interest rates are still low and that cash might be better saved for a rainy day.

If you have bad credit, paying cash could ruin your chances to re-establish your credit. Use some of your cash for a down payment and finance the balance to show lenders you’re serious about repairing your credit.

Here are the pros and cons of paying cash vs financing a car.

Paying Cash


  • Save money because you won’t be paying finance costs.
  • Peace of mind in knowing you own your vehicle.
  • Convenience of no monthly payments.


  • Losing out on the other opportunities to leverage your cash. You may be able to earn returns on your money if you were to invest it instead of making car payments.
  • You’re missing an opportunity to build a more positive credit score.
  • If this is all the cash you have on hand, you’ll not have a “nest egg” around for emergencies.

Financing a Car (Getting a Car Loan)


  • Rates are still low for those with good credit.
  • Rates are also still lower for those with bad credit (but higher than for those with good credit).
  • Build and/or re-establish your creditworthiness.
  • Have cash available to invest elsewhere and increase income.
  • Peace of mind knowing you’ve got cash available should something unexpected happen.


  • Pay more for the car because of financing costs.
  • Time investment recommended for researching lenders and dealerships who can help with financing.
  • Paying the monthly payments.


Dye Autos has been helping customers like you with car loans for many years. We’ve got over 70 years experience in auto loan financing and we’re here to help. Call us at (303) 286-1665 or simply use our easy contact form >>here<<.

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6 Key Questions to Ask When Financing a Used Car

By Dye Autos / January 25, 2018 / Comments Off on 6 Key Questions to Ask When Financing a Used Car

key-questions-to-ask-when-financing-a-car-denver-1Financing a used car or truck is something nearly everyone does at least once in their life. At Dye Autos, we’ve been providing financing for customers in Denver and the surrounding areas for many years. It’s still difficult for many customers to navigate the waters of auto loans and we work hard to make the process easier.

A little knowledge goes a long way.

It’s a good idea to prepare yourself from the outset so you’ll know exactly what to expect before you make this financial commitment.

The fundamentals of financing a used car or truck are:

  • Type of vehicle you want
  • Determine down payment amount
  • Creditworthiness
  • Monthly payment and terms
  • Get Pre-Approved

We wrote in more detail about these fundamentals in our post here: “Answers to Your 6 Biggest Used Car Financing Questions.”

When you’ve got your fundamentals figured out, your next step is to make the actual transaction – go to the dealership and drive home in your dream car.

When you’re at the dealership financing a used car, salespeople and managers do their best to answer every question and they’re required by law to give you important disclosures. But why not bring with you a list of the 6 key questions you should ask?

All of it boils down to this: How much am I paying for the car? Get the answers to this six-pack of questions before you say yes to the financing.

6 key questions to ask when financing a used car or truck

What is the …

  1. Precise (down to the penny) price I’m paying for the vehicle?

  2. Total amount (be exact) being financed?

  3. Amount I’m paying for the credit (finance charge)?

  4. Annual percentage rate (APR) I’m paying?

  5. Exact amount of each payment?

  6. Total number of payments?

The Golden Rule of Financing a Used Car

Be prepared.

Uncertainty is not your friend, especially when you’re financing a used car or truck. The decisions you make will have a lasting effect on your life for many years to come…so choose wisely.

At Dye Autos, we pride ourselves on being transparent and responsive to your needs. We walk our customers through every step of their car or truck purchase and we’re happy to help you.

Call us today with any question you have, even if you’re not in the market to buy right now: (303) 286-1665

“If it’s a truck you wanna buy, you’d better call Dye!”

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