a car with cash" />Purchasing a car with cash can offer some benefits, but it may not be right for everyone. See how to buy a car with cash, along with the pros and cons of doing so.
a car with cash" />
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Buying a car with cash helps you avoid monthly payments and interest, but you’ll want to weigh the benefits against downsides like the opportunity cost of the money you’ll spend and potentially missing out on dealer incentives.
If you’d like to pay in cash, researching vehicle options early on can help you determine how much you’ll need to save.
If you decide not to pay in cash, alternatives like bank financing, dealer financing, and personal loans may be worth considering.
For a digital-first generation, paying for anything with cash might feel foreign. However, buying a car with cash has some financial benefits. In this article, we’ll explore the upside to going the all-cash route for your car purchase and some alternatives to consider.
For example, if you want to buy a car for $20,000 two years from now, you’ll need to save $833 monthly. If that seems steep for your budget, try changing your timeline so the monthly amount fits. Simply extending the buying timeframe from two to three years lowers this amount to $555, which may be more feasible.
There are several accounts to choose from to stow away money for a short-term savings goal like buying a car. Since you’ll need the money within the next few years, it may be best to choose a savings account instead of an investment account, which could carry more risk. A high-yield savings account (HYSA) is a great option to consider as it generally pays more interest than a traditional savings account.
