Now that you have found the right car that you have been looking for. What next? You need to choose the method of payment; do you want to lease it, buy it outright or get it financed? Your method of payment depends on factors such as the type of car you want, how long you want to own it, how much cash you have, and your credit score. If you are financially down, you can get cash for non running cars, top up and purchase your dream car.
A recent data from Statistic Brain showed that in America, 43% of the people opt to finance their cars, 36% buy them outright, the remaining 21% prefer to lease them. That means that a majority of people prefer to buy their cars through cash than being financed or leased.
The following are advantages of buying a car with cash.
- Discounted price
When you purchase your car with cash, there are discounts which you get. Moreover, if you pay cash, there is a room for negotiations which may make you end up buying the car at a discounted price. Automakers usually make attractive finance offers like zero percent offers or one-two percent offers, but in the real sense, all these offers come at the expense of a higher price.
- No interest rate
This is an undeniable benefit. You don’t pay an interest fee. That money that you could have paid as interest, you can save it for retirement, vacation or a bigger home.
- It is convenient.
Buying a car with cash is very convenient. It doesn’t involve a lot of processes. If you find the car that you want, you pay for it and own it. Just as simple as that.
- Future flexibility
Since you don’t have an outstanding loan on the car, you’ve all the rights on it. You have the title with you, unlike when a bank finances it. You can sell the car easily if you want to upgrade or sell it for whatever reason. Majority of people don’t want to buy a car that’s still owned by the bank because it makes the purchase process a lit bit difficult.
- It lowers the total cost of the car.
If you pay your car with cash, basically the cost of the car will be lower as compared to when the car is being financed. That’s because of the absence of taxes and some deduction fees. Financing will make you end up buying an expensive car.
- It makes you worry less
Paying for your car with cash takes away the burden of worrying about the high-interest rates or your credit score before you can get the car. With cash payment, you don’t get worried about the fluctuations going up and causing interest rates to go up. You simply buy your car and forget about that matter.
Nowadays, nearly everybody wants to own a car. It’s a great move because having your own car has many benefits. Owning a car is very expensive, and owing any amount of it is not a good idea either. That’s why you should choose to buy your car with cash.