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Is it financially in your best interest to pay cash for a new car?
Wiki User
∙ 15y ago
If the only thing that matters is the bottom line, then yes, paying cash on the barrel head is the least expensive way to buy a car. If you calculate the present-worth cost of financing a vehicle, even at a reasonable interest rate, it will be higher than if you paid cash for the car. Having said that, one must consider the opportunity cost of paying all at once for a vehicle. If you plunk down 20 or 30 grand or more for a car, what else might have you done with that money? If you can invest it, then using it all to purchase a vehicle may not be a good idea -- but only if your rate of return on the investment is higher than the interest rate you would pay on the loan if you financed the car. It depends on the interest rate. You need to calculate the cost of interest to finance the car, then calculate how much you would make if you invested the money for the same period. A zero interest loan that many auto manufacturers are offering might be to your advantage if you would invest the money for the duration of the loan. On the other hand, can you get a discount for paying cash and how does THAT fit into the above calculation?
Wiki User
∙ 15y ago
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Is it better to pay cash when buying a car?
When you pay cash your interest payment iszero , its always better to pay cash
What are the advantages of paying cash for a new car?
If you have enough disposable income with which to pay for a new car with cash, then do it. The advantages are in not having to pay any interest on a loan.
What are the best credit card rates available?
To get the best credit car rates you will need perfect credit. Some of the best rates out there are 0% interest for 18months with 2% cash back offered by Citi.
Is there advantage of buying a used car with cash?
You bet. You will be able to get a better price. You will not have to pay interest on a car loan. You are a smart shopper if you pay cash for a car. Only suckers borrow money to buy a car.
What is the best loan for a car repair?
CASH
What The Best Way to buy A Car?
cash
Buy a Car Outright vs. Finance a Car Which one is better?
Of course, using cash is the best way as you don't have to pay any interest. If you cannot afford to buy a big car, then it is better to buy a small car, but try to avoid taking a loan for the car.
Does mom have legal rights to my car if she is co signer?
If the loan is as yet unpaid, then yes. As long as her name is on the loan, she has the right to weigh in on the financial future of the car. She has a vested interest in any actions of the vehicle which may decrease it's value. She also is entitled to oversight of any cash generated through the sale of the car because default of the loan will effect her financially.
What is the best way to get cash for my car?
The best way to get cash for your car is by trading it in at a dealer. This especially useful if you intend on buying a new car as the dealer may be inclined to offer you a good deal.
Do you have to have your credit run if your buy a car?
No, indeed. Cash suppresses all interest in ones credit rating.
What's the best site to use to get cash for my used car?
Depending on the quality of the car, you could always try selling it on Ebay. You could get decent cash for car there.
What is the best way to buy a new car?
Pay cash.
