Is it actually feasible to purchase a car today with cash? The simple answer is “Yes.” In many cases people have bought into the norm which is go to your bank/credit union, fill out a loan application, get approved and like magic you have money to buy a car.
The reality is you don’t own a car, you now have a car payment with interest. Of course, there’s the argument, “interest rates are so low, why would I spend my own money when I can get such a low rate and keep my money?” Well, most folks don’t keep their money if they get a loan at a low rate. Most eventually see this as extra money, and then they spend it and have a car loan.
Ever wonder why car dealers and other folks seeking to get you to part with your money call you Consumers or Customers? It’s because it is the very thing you do, consume. Their sole goal is to get you to part with your money and feel good about it…until you start making the payments.
There is a better way…note this isn’t an easier way but it is better. Save your funds for a new car and pay cash. Guess what? You won’t have any payments when you leave the lot. You also can negotiate a better deal. This may not happen at the first dealership or the second but in the end someone will want to work a deal to get a car sold.
A personal experience was going in to purchase a cash car recently. The deal was in the final negotiations phase when the salesman thought he had another buyer will to pay full price. He let me walk after I put cash on the table. I walked and within 2 minutes he called to ask me to come back and buy the car, as his other buyer didn’t have the money. Too bad, I went to another dealer got a great deal and no payments.
Owning a car out-right is a wonderful feeling. You leave the lot with your car…not a car payment for months.
When planning for your financial future Stop Paying Interest and Start Earning Interest!