When buying a car, a lot of people struggle to decide if they should purchase outright or get car loans. While car loans aren’t for everyone, they can be a great option for some people. If you are having a hard time deciding what to do, ask yourself the following questions to see if getting a car loan is a good choice for you.

Are You Short on Cash?

Do you have the money to purchase upfront and outright? Unfortunately, in many cases, the answer is no. If you don’t have enough money to purchase a decent car but you need a car sooner rather than later, the best option is to apply for a car loan for a good car rather than spending what you do have on a clunker.

Are You Financially Responsible?

If your credit history reflects financial responsibility, you can most likely qualify for a low interest rate loan. This means that in the long run, you won’t pay that much more than the purchase price for the car, with the added benefit of having extra time to pay for it. Additionally, if you know how to be responsible with your money, you won’t suffer consequences of late or missed payments.

Do You Need the Money You Have?

If you have enough money for a lump sum purchase but are worried about using it, don’t do it. Having money as a safety net will give you more peace of mind than any car will. It’s always nice to know there is money available to use in an emergency. Rather than making a huge dent in your savings, get a car loan and make a payment each month from the paychecks you earn.

If you live paycheck to paycheck, barely afford rent, or know that you don’t handle your finances that well, car loans might not be your best option. However, if you asked yourself these three questions and you answered yes, look into car loans. They could be your best bet for immediate access to a safe and dependable car.