Indeed the last couple of years have been big for car sales, with over a million vehicles being moved every month. Most of you will also like to add their name in this long list of transactions. Buying a vehicle will require you to either finance it or you pay cash for it. Remember that if you have money, it will be better you buy the car with cash. Continue reading to learn more reasons why you should buy a car with cash.
The first benefit is more negotiating power. One sure thing is that when you walk onto a lot and tell the car dealer that you have a check for them sitting in your pocket, they are going to be more inclined to sell to you. This is because they will know that you are a serious buyer who is worth their time. For that matter, you will be free to leverage your all-cash status as a bargaining chip to try and get your vehicle’s price down. On the other hand, with no cash you will likely pay more. Here you will not get the freedom to bargain because you think they can decline your offer.
Apart from that, you will not pay interest. Have you ever wondered why those “cash for cars near me” guys offer their customers cash deals and don’t use bank financing. Financing a car means paying the lender monthly interest over the lifetime of your vehicle which will cost you thousands of dollars. While with cash, you will just buy the car with its listed price without dealing with the lender.
The other benefit is reduced insurance rates. You find that when you are financing a car, it technically belongs to your lender until you pay it off. Being that the car does not belong to you, when you go to insure it, you will be asked to opt into insurance packages that include body repairs. It will be a different case when you own the car as you can just decide to invest in cheaper liability coverage and assume the risk of your car getting totaled in an accident.
Besides, you will not have to budget for car payments. You find that buying a car with cash is a freeing experience for the simple reason that once you drive it off of the lot it is yours. You will not have to worry about interest payments or a monthly car bill.