Have Cash Outright? Pros and Cons of New Car Buying
Buying a car is a lot like buying a house: you use your income to decide just how much you can realistically afford. On average, don’t spend more than 15% of your net monthly income on a vehicle purchase.
When you have cash outright to buy a car, you have the opportunity to purchase a vehicle without making monthly payments and paying interest. Should you buy a new or used vehicle? Which gives you greater value for your money in the end?
You may have heard that buying a new vehicle isn’t worth the depreciation value, but there are benefits to buying a new car. Discuss the following pros and cons of buying a new car outright with your auto dealer.
Pros of Buying a New Car Outright
A few perks of buying a new car over a used vehicle with cash in hand include the following:
When you have the ability to pay for a new car without the hassle of loan payments and agreements, you have more bargaining power for pricing a new vehicle. Make sure to leave room in your budget for dealer documentation fees and other expenses when negotiating a fair cash price.
When bargaining the price of a new vehicle, be courteous; an auto dealer will usually be more willing to work with you if you have an open, educated mind about what you are shopping for and what you are willing to pay.
Purchasing a new vehicle gives you access to modern technologies on the market with cars today. If Bluetooth and Wi-fi technologies as well as a modern interior and exterior design is what you need, you’ll be disappointed in following older trends over new.
Having aftermarket additions put on a new car cost extra, so make sure you budget your cash accordingly for these perks before going to the car lot. Or, you can look for stock vehicles that feature most of the additions you’re looking for, such as tow packages, roof racks, DVD entertainment players, and more.
Cons of Buying a New Car Outright
Consider the reasons why buying a new car outright may not be the best choice after all.
All cars depreciate as soon as you put miles on them, including brand-new vehicles. New cars carry the most depreciation in the first three years. If protecting the value of your investment is important to you, then consider buying a brand-new car only if you plan on owning it long-term. Otherwise, buying a late model vehicle is better for recouping your investment when you eventually sell or trade in your vehicle.
A newer vehicle costs more than an older model, which means a lot of your cash can be eaten up in the sale. If you want to leave some cash in your pocket after buying a new car, consider this: buy a stock version of a new vehicle or opt for the same car in a more conventional color to lower the price a bit, allowing you to have funds leftover for other car needs.
Just because you have cash to pay for a car doesn’t mean every car fits your budget. However, even though new cars cost exponentially more than used models, your purchasing selection isn’t as varied. If you want a wider selection, talk to your auto dealer about gently used late-model vehicles as well as new.
With money in your pocket and a new car in mind, you are ready to visit the dealership for a hassle-free, no-pressure car buying experience. Allow our team of auto specialists to help you select the right new, or used, automobile for your needs. See us at Roseville Automall today.