If you’re in the market for a new or used auto, you might be wondering if you can cash out your future structured settlement payments in order to pay for a car purchase. You may also be debating whether a new car or a used one is your best choice. Although you can get a great vehicle with either option, it’s a good idea to carefully weigh both the advantages and disadvantages of buying used or new before making your final decision.
The price: This may seem obvious, but it’s a big one: if you’re on a tight budget, buying a used car may be the best option. And if you have your eye on a higher priced vehicle, buying it used may be the only way it becomes affordable. Keep in mind that brand new cars depreciate significantly as soon as they are driven off the lot. On average, new cars lose 60 percent of their value after five years. If, for example, you instead buy a used car that’s two years old, most of this depreciation will already be reflected in the price tag. Also, you can choose from a larger variety of cars, and you may have more leverage in negotiating for a better price. You can also buy a car from the previous owner directly, as opposed to a dealership, which can save you even more money.
Additionally, if you cash out structured settlement payments for your car purchase, buying a used car can make it more feasible to purchase it all in cash. With a cash purchase, you won’t have to worry about taking out a car loan, paying interest, and dealing with monthly payments. Not to mention, it also enables you to spend far less time at the dealership since you don’t wait for all the loan paperwork to be processed and reviewed!
Improved dependability: Even though used cars don’t usually carry the same warranties and protections that come with a new car, the initial factory warranty on a used vehicle is usually transferable to the next owner. In the past decade, vehicles have become much more dependable, so buying used doesn’t necessarily mean that you will have costly repairs for the first few years of ownership. Additionally, dealerships offer extended warranty plans that cover the cost of most repairs, which can be a better option than buying a used car from an individual. However, if you’re purchasing a used car in a private sale, there are many companies in the marketplace that also offer extended warranties (for an additional cost, of course!)
Newest safety features: A new car will usually have the newest safety features available. Newer cars also tend to be more fuel-efficient than older cars, which means that a new car can not only help you reduce your carbon footprint but can also save you a lot of money on fuel costs. If you drive often or have a long commute, this benefit alone can be enough to opt for a new vehicle.
When you buy a new car, you have the option to customize, from the rims to the seat material to additional safety features, assuming you are willing to pay a little extra for any upgrades.
Warranty protection: When you buy a new car, you receive warranty protection from the manufacturer, which covers the car for the first few to several years (or once you reach a certain mileage amount, whichever comes first). During this time, the dealership will generally fix most anything that goes wrong with the vehicle. This can offer a lot of peace of mind and is something to consider when you decide between purchasing a new or used car.
Roadside assistance: In addition to the warranty protection that comes with a new car, almost all new vehicle purchases will include some type of free roadside assistance while the car is still under warranty.
Do you need cash to buy a vehicle? Whether you’re buying a new or used auto, having money for a down payment can mean the difference between getting the car you really want and settling for less. We can give you a lump sum payment if you do decide to cash out structured settlement payments for your vehicle purchase.
The lump sum of cash you receive can be used to fully pay for a car, or for a down payment, whichever best suits your needs. For more information on getting a lump sum payment after you cash out structured settlement payments, Contact DRB Capital today at 877-894-4541.