One of the biggest investments you can make next to a home is the car you buy. Because of how much of a commitment buying a car can be, you need to play your cards right. Here are the top reasons you should buy a car with cash instead of getting a lease or financing.
Buy a Car With Cash To Get a Better Deal
Car negotiations are no easy task if you have never done it before, but offering cash is a common tactic many use to secure the Jeep of their dreams or obtain another desired vehicle. Most of the time, offering cash will drive down the price that the dealer is looking for because you can get cash on the spot.
Another problem with financing a new car is that you can run into interest down the line. Interest can serve as punishment for not paying your car off in a certain amount of time. If you are unsure about what your financial situation looks like in a few years, pay for your car in cash instead.
Lower Monthly Expenses
A car payment each month can be hard to keep up with when you have other expenses to worry about. A car payment can be anywhere from $300 to $500 a month. Pay with cash and you not only get a better deal right off the bat, but then you only have to worry about repairs—which aren’t cheap either.
You Can Focus on Saving Money
The ability to focus on your savings is another one of the top reasons you should buy a car with cash. As mentioned in the previous section, financing a car isn’t cheap and can lead to you draining your savings. Buying a car with cash might cause you to take a decent amount out of your savings, but you can quickly rebuild your account since you don’t have to keep paying for the vehicle. When you finance, you are still responsible for a down payment, which isn’t cheap either.
Care for Your Car
Not only can you focus on putting money in your savings, but you can also have the money to keep your car running by taking care of necessary repairs. No matter what kind of car you have, breakdowns and maintenance are inevitable, and if you are stuck with a car payment, then you won’t be able to care for your car.