When you decide to buy a used car in Atlanta, very often it is the cheaper price that drives you in this direction. Used cars come at a fraction of the price compared to a new one of the same model and make. If that thought is interesting, then how about some better savings the next time when you buy a car? Yes, we are talking about the advantages of using cash for your next purchase. Let us see how buying a used car with cash can prove to be more beneficial than financing the car.
You will stick to your budget – Used car dealers in Atlanta offer add-ons over the basic model and we all know how tempting that can get! But when you buy a car using cash you clearly know your limits. You can be spending only to the last dollar in your pocket and not a penny more. Whereas with financing, you are prone to overspend as you will only be seeing your monthly payments. Even when it is split across installments, a higher total price is not something that you would want, is it?
Financing means missing out on discounts -This may not be evident. But by financing you are also losing on the discounts that you may be entitled to. Bring cash to the table and you will be striking a better deal in an instant. The Atlanta car dealers will be more than happy to offer you a good discount on an outright purchase, a win-win deal for both.
You do not get tax deduction on auto loans – While you can avail deductions on mortgage and education loans, your car loan offers you no such benefit.
Financing limits your liquidity and savings – Think of all the things that you could have done with your whole monthly income without the obligation of a loan. You could spend it on things that you love, go on vacations or save for the future. All these are better uses than just paying interests on a loan.
Risk of negative equity or upside down loan – When the value of your vehicle falls below the outstanding loan on it, it becomes a negative equity or an upside down loan. Longer term in financing and lower down payments often land you up in such situations. You can avoid this by choosing cash payment over financing.
When you buy using cash you also stand to gain in many other ways too. This includes zero financing costs, absolute ownership of your car and the convenience of zero monthly payments afterwards.