2007-08-23 14:28:46 · 14 answers · asked by Digital Sister 2 in Cars & Transportation ➔ Buying & Selling
When negotiating with a car dealer.......
2007-08-23 15:27:02 · update #1
There are some advantages. First there is no lien on the title and you have a clear title to start with. A lot of the manufacturers offer cash discount on their cars and trucks or they will offer low interest loans. Paying cash will let you take advantage of the lower initial cost. I prefer to pay cash myself, I tend to keep a car for a number of years so the cost can be averaged over 5-10 years. It is a lot cheaper than leasing, plus I don't have the mileage limitation that leases put on you.
good luck.
2007-08-23 14:57:22 · answer #1 · answered by Fordman 7 · 3⤊ 0⤋
Paying Cash For New Car
2016-12-26 14:24:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Actually yes as long as your taxes are in order. If you can afford to buy a car with cash it is the best way to go, but make sure it is the car you want because a day or two after it leaves the lot, it is permanently yours. Financing costs a lot of money and meanwhile your car depreciates, financing helps a buyer to lose twice basically, buying a car with cash is a good way to avoid all these charges which can sometimes outweigh the value of the car after the first 3 or 4 years of owning the vehicle due to depreciation and interest values. I would do your hmework on the car you are buying such as, Is my car foreign and if it is and I have a problem how hard will the parts be to find, what does the warranty cover labor and parts, what kind of history does this model of car have in terms of recalls and malfunctions. Either way you go, if you go with cash you save a very large amount of money sometimes several thousands of dollars.
IMPORTANT: Retailers are obligated to report cash sales exceeding 4000 dollars to the IRS.
2007-08-23 14:43:24 · answer #3 · answered by silencetheevil8 6 · 1⤊ 0⤋
Advantages: - Most sellers like to see the money there and then, rather than waiting for a bank transfer. Fraud can happen alot when it comes to banks and cheques, so it offers the seller peace of mind. - Because of the above point, it's easier to haggle with the seller and make them lower the price. Make sure you insist that you are paying by cash, so they must be able to do you as deal. In most cases, they will. Disadvantages: - It means you have to carry around a large amount of cash which can be dangerous in itself - it can get stolen/mugged from you pretty easily if you are not with other people/in a bad area. - Some sellers may not be able to get to a bank quickly or just may feel awkward keeping large sums of money on their person or in their home for a few days, and this may put them off the sale. Hope this helps! :)
2016-03-17 05:21:37 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Even though you are going to pay cash, you still need to shop around. My opinion is that you but a fleet or demo vehicle. These are vehicles that have been driven to allow people to test drive a type of car. They have a few miles on them, but they are still new,BUT because they DO have miles on them, they cannot be sold as new. This will help you, also in the little "fix the bugs" session of owning a new car. If you buy a car from the showroom floor, you lose about $2 / $3,000 as soon as you drive it off the lot. Good Luck.
2007-08-23 22:36:47 · answer #5 · answered by Bill P 5 · 0⤊ 0⤋
Yes. Interest adds up and you can be paying 50% more for the car in 5 yrs. Thats roughly what it is. Plus higher insurance premium for comprehensive coverage is a must if the car is under loan.
If you can afford it and still have some spare cash remaining, then pay it full.
2007-08-23 14:43:57 · answer #6 · answered by WHO 3 · 1⤊ 0⤋
J Paul Getty the mulibillionaire oil magnate.. once said.. if it depreciates rent it.. if it appreciates buy it.. let that be your guide.. I would think that if you have twenty thousand dollars or so to pay cash for a new car.. you would be much better off putting the money into an account of some kind and let the money earn interest.. lease a new car for twenty four months.. that way you will only be paying for the part of the new car that is being used.. you should be able to deduct some or all of the lease payments if you use your car for business.. oh and this is extremely important.. if you lease a car.. DO NOT DO IT THROUGH A LEASING COMPANY OR A CAR DEALER.. put your money into a credit union.. and lease through them.. it is the best and least expensive way to do it.. if it depreciates.. rent it.. do that for a while.. 24 months.. then turn it in and get another one.. and keep your money.. good luck
2007-08-23 14:44:45 · answer #7 · answered by J. W. H 5 · 0⤊ 3⤋
Yes and no.
It's an advantage because you don't have to pay for interest on your loan.....
It's not any other advantage - unless you have really bad credit.
Edit after reading Dodge Man's reply:
Dealers don't give better deals for cash payment. There's no benefit to them. They make money on financing, and it's easier to sell the back-end products (extended warranties, etc.) when financing.
2007-08-23 14:36:16 · answer #8 · answered by terje_treff 6 · 3⤊ 0⤋
yes there is ,a lot of times you,ll save on taxes and some dealers will give better deals ,this really depends on if its a used car or a new one,either way you can save money by paying cash for it,good luck on it.
2007-08-23 14:35:55 · answer #9 · answered by dodge man 7 · 1⤊ 0⤋
Yes, you will probably get discounts, shop around.
If you can pay cash for a car do it.
2007-08-23 16:19:47 · answer #10 · answered by wazup1971 6 · 0⤊ 0⤋