How do I afford a car without a car loan?

I want to get a car, but I don't want to have to take out a car loan. Any tips for affording a new car?

Answer
If you want to hop into the driver’s seat of a new (or new-to-you) car without taking out a car loan, it’s not as difficult as you might think. The easiest thing to do is to choose a car that fits your budget. Depending on your finances, you may be limited to used cars.
You might want to bring home that 2022 Audi—and a lender might try to tell you you should—but you can find a fun, high-performing vehicle for much less. Decide on a vehicle, then set a savings goal. Then, go loan-free by paying cash or paying in full at the dealership.
A few things to remember if you’re buying a used car:
  • Review your state’s lemon laws
  • Have the car inspected by a trusted mechanic
  • Test drive the vehicle
  • Ask for maintenance records
  • Ask why they’re selling the car
  • Get a CarFax report
Taking these precautions can help you avoid a rip-off.
If you’re looking to save money on all your car-related expenses, use Jerry to find a cheap car insurance policy. Compare dozens of competitive quotes and register for your new policy in-app.
Eric Schad
Answered on Oct 21, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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