Using a Cash Advance to Purchase a Used Vehicle

Does it sound crazy to use a cash advance to purchase a used vehicle? Unless you are making a ton of money in which case you wouldn’t need a cash advance, it is crazy! Of course there is always the possibility that you can find a two hundred dollar hunk of junk, but dependability will be an issue. The purpose of a cash advance is to borrow a small amount form your next paycheck to pull you through an “unforeseen circumstance” not to really buy a used vehicle.

A cash advance could however help once you have obtained alternative financing for your used vehicle. Let’s say that your “new” used vehicle is parked in the driveway waiting until the next paycheck to purchase tags and insurance. That would be a good example of getting a cash advance to help get the vehicle legal and on the road. Always keep in mind that you will have a fee added to the amount of your cash advance so make sure it is affordable for you to payback when the loan is due.

You may find some cash advance lenders that try to convince you to use a cash advance for “any” situation. Although tempting do not fall into the trap of getting an advance for something you could find alternative cheaper financing for. A smart decision about a cash advance will be the right decision for you. Millions of people last year obtained cash advance loans to help with money problems and there’s nothing wrong with that, but beware of unscrupulous lenders promising huge loans that you know you can’t afford. If you fall into the cash advance mud hole it can be very difficult to dig your way out especially if you are on a limited income.

The best advice for a prospective cash advance customer would be to budget and work with your current finances to get out of debt. Resort to a cash advance only if an urgent problem arises and work with the lender you choose to make sure that you will be able to pay back the loan without hardship on the due date. Never rollover or extend your cash advance, the lender will charge you more fees and you will be deeper in debt. If you’re looking at purchasing a used vehicle, don’t use a cash advance. Conventional financing is more appropriate and will save you money in the long run.