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Pros And Cons Of Buying A New Car With Cash

buying a new car with cash
Photo by Andrew Pons on Unsplash
Buying a new car with cash might seem a great option for many people but it carries its pros and cons. There are a number of people who believe every product should be purchased with cash instead of getting loans or on installments. This is a separate debate whether it should be loan or installments from the dealer. However, here we will look into the pros and cons of buying a new car with cash.

Pros

1. Cheaper Rates

Whenever you get something on installments, it comes with an increased price. While in the case of cash, the buyer pays only the fixed amount and there are no interest rates and profit margins set by the dealers. For loans, the buyer still pays a lot more than the actual amount and has to follow the strict rules by banks.

2. Simple and Flexible

For buying a new car with cash, you will not be required to fill the forms and follow the formalities or requirements by the dealers. It’s very simple and there is nothing complex. All you need is the exact amount, pay it to the retailer and get hands on your new car. Furthermore, with cash, you can also get some discount and end up paying less than the fixed amount.

3. Peace of Mind

There is nothing more important than peace of mind. When you buy a new car with cash, there is are no further payments and everything is paid on the spot. You are no more worried about the monthly payments and installments. Moreover, you have all the rights to do anything with your car, you may sell it and get the new one but this peace of mind doesn’t come when someone buys a car in installments. 

Cons

1. Time Taking Process

Buying a new car with cash is not a time taking process but the buyer needs a lot of time to save money to afford a new car. It’s only possible when you have a handsome pay, good and reliable source of income and can save every month to buy a new car. While the businessmen and the rich don’t need any installments rather they can pay in one step.

2. Hard to Afford

There are a lot of people who can’t afford vehicles and have the options of installment or loan by the bank. Such people don’t have enough money to pay once and bring the new car to their home. They might be in trouble when there is only one option to buy a car and that’s by cash.

3. Limited Options

As you may have a limited budget when you are buying a new car with cash, so you may not be able to have multiple options while buying. People who buy in installments or by loan can get a dream car or one that’s even a bit expensive. But with cash, this option is snatched right away from your hands. So it’s a bad option for the people who want to explore cars and bring home one that suits their needs.

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