You might have often wondered if cash is the best way to pay for a car, or if you should get it on credit. The Youtube video "Should You Pay Cash For A Car?" has the best explanation on this subject so you can make an informed decision. Let's find out more!
There are several ways people in America can obtain a car. They can either pay cash, finance it, or even lease one. But which one is the best option? The truth is that interest rates are incredibly low now, so paying cash for a car might not be the most solid decision, as you'd have to dump a large sum of money right away.
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It seems that people can get car loans with interest rates as low as 0.9%. That's almost nothing. Someone with good credit can easily deal with 1.9% or even 3.9%. You might even get a better return if you invest that money. Therefore, financing and leasing are the better options. To understand which of those is the best, you have to remember John Paul Getty, who said that you should only buy things that will increase in value. A car will usually not increase in value over time.
You can check the rest of the video for more details about using cash for my cars.
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