How and Why to Pay Cash for a New Car
Given the average cost of cars today, financing a car purchase is much more common, but some people still prefer to pay cash to buy their car. Some companies even offer a Cash for Car service that you can take advantage of. You should be aware of a few things if you’re wondering how to purchase a car with cash.
To decide how much you can and should spend on a new vehicle, consider your income, financial objectives, assets, and net worth.
In most dealerships, you typically have four payment choices when paying cash. You can transfer money to the dealer using their bank account information. Some dealers also accept personal or banker draft cheques, but you must wait for them to clear before picking up your car. Some may accept debit card payments on the day you pick up your vehicle, while others may require it in advance. Credit card payment is another option, but they will need you to pay the merchant fees.
You can obtain fantastic discounts if you pay cash upfront, especially if you’re buying from a private seller or a smaller, independent dealership. The fact that you won’t have to make any monthly payments is another benefit, and since there are no monthly payments, there will be no additional interest fees.