Should I Pay Cash for a New Car?

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Navigating a Tough (Financial) Decision

You’ve probably heard it from a thrifty parent or relative; “If you can pay cash for a car, you totally should do that!” But, buying habits have changed over the years, and building credit has become just as important as saving your pennies. At the same time, leasing has become more and more popular.

Just because you might have the cash saved up, should you buy a car outright and drive it off the lot owning 100% of it? What was once a straightforward decision now becomes a bit more nuanced, and that’s because there are multiple combinations of methods for purchase. These include a full loan, full cash, or a large down-payment, allowing you to take out a smaller loan. You could even finance the car, and use the cash you’ve saved up to pay it off more quickly. This could help you build up credit with less interest costs. 

Everyone’s financial situation is different, and especially at times like these, your financial situation might be evolving week to week. So, we’ll explore all the angles to consider on the following slides to help you make the right decision.

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