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Every year, thousands of people buy a new car, with the help of a loan. Most of these people will spend more money than they needed to, not because of the cost of the car, but because of the interest that will accumulate on the loan.

One easy way to save money when buying a new car is to save up for it. Put the money aside in a separate bank account and collect the interest from it. By paying cash for the vehicle, all that extra interest is avoided, saving the average consumer hundreds, if not thousands, of dollars.

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14y ago

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