According to NewCars.com, only 27 percent of car buyers in the U.S. do not finance a vehicle purchase. Buying a car with cash means that you do not have to worry about monthly car payments, having a car that is worth less than you owe on it and dealer financing costs. Using cash to pay for the entire cost of a car can be a lot of upfront money, but it can lower your overall vehicle costs.
Instructions
- 1
Visit local car dealers to shop for cars that you are interested in purchasing. Once you find one that you like, take it out for a test drive to see whether you want to buy it.
2Tell the salesperson that you are interested in purchasing, once you find a vehicle that you like and want to take home. The salesperson will begin to prepare your purchase paperwork.
3Give the sale person your personal information, but decline the request to run your credit or pull your credit report. Because you are paying cash, you do not need to have your credit report looked at. Since the number of inquires on a credit report can affect your credit score, prevent the dealer from making the inquiry. Do not want to tell the salesperson that you are going to pay cash just yet; say that you want to negotiate a price first.
4Negotiate the price of the vehicle so that you can pay an amount you are comfortable with. When you are thinking about how much you can afford, factor in sales tax, licensing and registration fees. Focus on the total vehicle cost and not a monthly amount, since the salesperson will likely ask you the monthly amount you want to pay for the vehicle.
5Tell the salesperson that you are paying cash once you have settled on a price. This is important because car dealer make money off of the financing, which means waiting to disclose this can result is a better negotiated price.
6Give the dealer your cash. It can be in actual cash form or in a check or cashier's check form. Once you pay, you will need to sign all of your car ownership documents before you can drive the car home.
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