Automobiles

How to Pay Cash for Your Next Car

2 Mins read

Many people own cars, but not everyone owns them outright. That’s because many people have financed them, whether they’re new or used. If you’re looking to buy, be smart about how you pay for it. A lot of buyers go for a loan, but that’s not always the best move. Paying cash is the best way to go since this is an investment that doesn’t go up in value. As soon as you get your new ride, you will start to lose weight. If you get a loan, you’ll be spending money for interest for something worth less than what you paid, increasing the cost of ownership.

Preparing for the Next Purchase

One of the downsides to spending cash is that it ties up money you could use for other purposes otherwise. For instance, if you have student loans, you might feel that you want to take care of them before making a major purchase. Luckily, you don’t always have to decide between the two. If you have debt from school, look into refinancing it. Many people find they can save money by getting better interest rates. Using a student loan calculator allows you to preview your potential savings from refinancing.

Next Car

Do You Really Need a New One?

For many people, having enough money to pay cash for a car is that they don’t have enough to do so. It’s often hard to save up a large chunk of change to own outright no matter what your situation. But that doesn’t mean it’s impossible. First, try to keep your current vehicle as long as you can. Many people don’t do this since they like having something new. If there’s still some life left in your vehicle, consider having it repaired instead of looking for a new one. Weigh the costs of mechanical work with that of a new car.

Setting Aside Funds

If you can keep yours well after paying off its loan, keep making those payments to yourself each month instead of to your lender. Set these funds aside in a savings account dedicated to this purchase. For example, if you had a monthly payment of around $550, you could keep giving it to yourself even after the loan has ended. Let’s say you owned the vehicle for four years after the loan was paid off. By the time you were ready for a new one, you would have around $26,400 saved up. With this money, you could buy a used that wasn’t too old. Or you could spend a few thousand more dollars to get a new one.

Keeping this cycle up will prevent you from ever having to borrow a car again. It does take some planning, so even if you don’t think you’ll need another vehicle for a while, it’s a good idea to start saving up now. If you can, try to save some extra money along the way. That will help cover repairs on your current without dipping into the funds for the next one.

799 posts

About author
Falls down a lot. Extreme beer maven. Coffee trailblazer. Hardcore twitter geek. Typical zombie fanatic. Skydiver, foodie, band member, International Swiss style practitioner and front-end developer. Producing at the nexus of aesthetics and intellectual purity to craft an inspiring, compelling and authentic brand narrative. Let's chat.
Articles
Related posts
Automobiles

Special Factors to Consider in Truck Accidents

2 Mins read
Truck accidents can be far more devastating than vehicle accidents due to the sheer size of commercial trucks. This section looks at…
Automobiles

Serramonte Honda - The Best Deal for Your Car

5 Mins read
Serramonte Honda has been offering the best deals on car loans and maintenance at the most competitive rates in the past and…
AutomobilesUncategorized

Automobile manufacturing in Turkey reaches new historical file

4 Mins read
The Turkish car enterprise, which exports 79 percent of its production, started in December utilizing breaking ancient exports and manufacturing statistics. Total…