Should I finance all or some of a new car?

Is it better to pay cash for a used car? I am planning on buying a used car and have negotiated a price. At $30k I can pay for most of the car out of pocket.

Answer provided by
Johnny Puckett
Answered on Jun 25, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
“If you can pay cash, you should pay cash unless it will eat up all of your savings.
A good rule of thumb when it comes to financing a car is to pay at least 20% for a down payment on the car.
From there, you should be paying as much extra every month as you possibly can. This will ensure you are never upside down on the car and you will likely make money on it when you go to sell it.”

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