Tips on Paying Cash for Your New Vehicle Tips on Paying Cash for Your New Vehicle

by Kevin Smith Author

When shopping for a new car, you have two options: Pay through financing or pay cash. Both have their advantages. If you opt to buy a car for cash in Florida, here are some general tips to keep in mind.

Private Sales Come with Risks

Obviously, the mantra of “buyer beware” is to key any private sale purchase. You can do your homework into the seller, make and model of the car, but it comes down to your skills at evaluating a vehicle and the trustworthiness of the seller. A good strategy for purchasing any vehicle is to bring along someone who is car-savvy, but this advice is particularly valid when considering sales that are not managed through a dealer or private organization.

Dealerships Want Financing

Your local vehicle dealer wants you to take financing to purchase a vehicle. They make money off of financing above and beyond whatever they make from the sale of the vehicle. What that means is that if you are offering cash to a dealer, you will have to use a “hard negotiation” strategy. Here is what the dealer makes off of you financing your purchase:

No monthly payments
No late fees
No interest paid
You never are late on a payment

While the amount of money they make off of financing varies according to the reliability of the seller to make payments on time, what they do make is worth it to them to push people to finance.

Research, Research, Research

Buying with cash unless it is an impulse purchase, requires you do to a lot of research.

Research the vehicle to find out if it is a reliable vehicle when sold used
Research the seller and determine if they have a good record of customer service
Research common problems with the vehicle, particularly if the vehicle has a lot of miles
Research options the seller offers if you do have problems with the purchase

In addition, you should do some finance calculations and make sure that paying in cash is the best choice available. For example, if you could use the cash for other purchases, financing might not be a bad idea.

Closely Examine the Paperwork

Most organizations that sell vehicles have a lot of paperwork associated with the sales to begin with. While the volume will not change that much with a cash purchase, the verbiage might. Carefully read all the paperwork and pay close attention to any warranty or dealer guarantee information.

If you are looking to buy a car for cash in Florida, you must take your time and make your purchase carefully. This advice can help you ensure the vehicle you buy meets your expectations.