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
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.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
What happens if I add full coverage to my car the day after hitting a deer?
I hit a deer last night, just weeks after paying off my car. Because I had paid it off, I switched to liability. But now I'm thinking of switching the policy back to full coverage to avoid paying out of pocket. Can I do this?
May 04, 2021
Where can I get a loan that won't require me to have full-coverage insurance on a vehicle?
I am looking to buy a used car for $12,000. I can put down $6,000 upfront. I don't want to pay for full coverage, so I don't want to finance the remaining amount through a car loan. Do I have any other options?
May 07, 2021
Does it matter if you make your health insurance your primary coverage on your auto policy?
"My car insurance company offered me the option to make my health insurance my primary coverage on my auto policy instead of having personal injury protection. Is there any downside to this? Am I saving money? Would I need to still pay my health insurance deductible?"
May 18, 2021