Should I Pay Cash For a New Car?

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Is Buying a Car With Cash Right For Me?

It seems like such a simple decision. If you have enough money to pay cash for a new car, you should do it. However, while that's often the smart choice, it's not always the right option. 

There are a number of ways to pay a dealer for your new vehicle: You can pay the full negotiated purchase price with cash (and the value of any trade-in) and drive away with 100 percent ownership of the car. You can finance the purchase and essentially rent the money to buy the car. It’s also possible to do a blend of both, with a significant down payment and a smaller loan.

The right path depends on your financial circumstances, your monthly budget, and your future plans. Find out how to make the right decision for you on the following pages.