Financing a Car - Financial Literacy - IntoMath
When you want to own a car, but your savings are not enough, you can finance your car. Financing a car means taking out a car loan and paying it back overtime. You could finance both a new vehicle or a used one. A financial institution loans you enough money to purchase your car, however, charges interest on the amount you borrowed. Usually you repay your loan by making regular payments every month or every two weeks (repaying the borrowed amount + the interest).
Financing a car is a good solution for someone who is able to make regular payments for a prolonged period of time (4-5 years). If you do not think you can maintain making those payments, for various reasons, car financing is not for you. It is then better to save up and pay the total amount at once (this may mean you would have to go with a more affordable vehicle).
Learn more about how to finance a car: https://intomath.org/how-to-finance-a-car/