Do You Need To Make A Cash Payment For A Car? Pros And Cons Of Paying Cash For The Car
The thought of not having to pay for a car is an extremely empowering one. If you're a savvy saver, you might be thinking about whether you could purchase a car using cash. But can you afford to drain your savings to purchase a brand new set of wheels? Do you see any benefit in getting a loan? Is it more cost-effective to purchase a car with cash instead of taking out a loan? At the end of this post, you'll know all the advantages and disadvantages about the best way to purchase a car with cash and if it's the right choice for you. The advantages of purchasing a vehicle with cash Before you look into how to pay for a car with cash take a look at the pros and cons of doing this. The main benefit of buying the car in cash is not the cost of interest and wasting the cash instead. For instance, if you buy an average priced, new car for $33,500 and then finance the whole amount at 3% per 5 years, you'll end up paying $2,617 in interest over the life of the loa