Most of us don’t have the full price of a new car sitting in our bank account, but if you’re lucky enough to be in that position, paying cash for your car may be worth it.
Whether it's worth buying outright or going another route will depend on your personal circumstances. You'll want to consider factors like how much cash you have on hand, how long you intend on keeping the car and whether your money would best be used elsewhere. Although you may want to buy a new car outright to save on paying interest, for example, it may not always be the best decision. If you think you may need the cash later on or you're someone who likes to swap for the latest car model, going the lease or financing route may be a better option. It’s also worth considering that, if you keep your cash available for other projects or investments, it may actually earn you a higher return than the interest you’d pay for your car’s lease or financing.
The bottom line? If you believe the cost of borrowing for a lease or loan outweighs what you'd earn from investments, buying the car outright may be worth it. Otherwise, leasing or financing may be the way to go. Ultimately, the best option for you will depend on your own individual circumstances.
If you're an existing TD Insurance customer looking to add a vehicle to your policy, you can review and manage your policy at any time via MyInsurance. Alternatively, if you're looking at a car and want to know what the cost of your insurance could be with TD Insurance, simply start with a quote.