How long is a 2012 Hyundai Elantra?
178.3″
Is it better to finance or pay cash for a used car?
If you’re sitting on credit card balances, chances are your interest rates are higher than what your car loan would be. It would make the most financial sense to pay down or pay off higher interest loans than it is to take the cash and purchase a car instead of paying the lower interest rate.
How much money can you haggle off a used car?
Most dealers build about 20% gross margin into the used car’s asking price. That means they ask for 20% more than what they paid for it. So offer 15% below the asking price.
Are cars cheaper if you pay cash?
Paying cash can get you discounts. That means that zero interest isn’t free. Cash gets you the discount price, which is the cost you pay for taking advantage of zero percent financing. And when you pay cash, you may even be able to negotiate a better price, particularly on a used car.
Do car dealers prefer cash buyers?
But that’s not how car buying works. Dealers prefer buyers who finance because they can make a profit on the loan – therefore, you should never tell them you’re paying cash. You should aim to get pricing from at least 10 dealerships. Since each dealer is selling a commodity, you want to get them in a bidding war.
How much can you talk down a new car?
For an average car, 2% above the dealer’s invoice price is a reasonably good deal. A hot-selling car may have little room for negotiation, while you may be able to go even lower with a slow-selling model. Salespeople will usually try to negotiate based on the MSRP.
Is it wise to pay cash for a car?
Some great reasons to use cash include: Your expenses and other obligations won’t be affected by a monthly car payment. Since you’re not dealing with a loan, interest won’t be added. It prevents the possibility of being upside down on a loan, which can happen when you owe more than what the car is worth.
Why you should pay cash?
Cash makes it easier to budget and stick to it. When you pay with the cash you’ve budgeted for purchases, it’s easier to track exactly how you’re spending your money. It’s also an eye opener and keeps you in reality as to how much cash is going out vs. coming in from week to week or month to month.