Generally, when shopping for a vehicle, most potential buyers in Lousiville, KY, plan to do so by taking out either a car loan or an unsecured personal loan to finance the purchase. The affordability of a used car, however, is often enough to entice people to pay in cash, i.e. in full. This is usually the case for buyers who want to avoid high-interest rates or incurring unwanted debt. There are many factors to consider with both options when it comes to buying a vehicle. So, let’s explore some of the pros and cons of paying cash for a used car.
Simple Process. Unlike a car loan, paying with cash simplifies the car-buying process. No credit checks or lengthy discussions regarding interest, monthly payments, payment frequency or term is required. You simply pay the dealer, and just like that, the car is yours.
Selling Flexibility. When you pay with cash, you own the car title immediately. This can be particularly helpful if you want to sell or trade in your current car without fear of prepayment fees or early contract break fees. If you decide to sell your vehicle privately rather than through a dealer, potential buyers of your vehicle will also prefer to buy from an owner who has the title in-hand.
Cost-Effective. Despite the higher upfront costs, purchasing a vehicle outright is usually cheaper as you don’t have to pay any fees or interest on the car. Plus, you may be able to negotiate a better deal since the dealer will have less paperwork to do.
Lower Debt. Unlike a car loan, you won’t be increasing the amount of debt you have. Additionally, by paying the entire price now, you’ll have more of your future income available for other expenses.
As a Lousiville, KY dealership run and owned by the #1 watched Car Salesman on the Planet, you can trust we know how to get you the best deal on a used vehicle that will last you for years to come, whether you decide to pay in cash or go for a flexible and affordable auto loan that meets your budget! We’re here for you before, during, and after the sale of your car. Even if you’re working with another dealer, we’re committed to protecting our customers. Browse our inventory of high-quality used vehicles today at Mike’s Car Store.