What You Need to Know About Paying Cash for a New Vehicle

man waits before pile of cash - paying cash for cars
man waits before pile of cash - paying cash for cars

The economy is still tight except for the stock market. Unemployment still high. Home values still languishing. But some new-car buyers are able to pay cash for a new set of wheels.

The question is: Should you?

Car dealers have long reported that many older customers of certain brands, like Cadillac, Lincoln and Buick like to pay cash for their cars out of personal preference. They don't like paying interest or having monthly car payments.

Until a few years ago, many consumers paid cash for cars out of home equity lines of credit so they could deduct the interest.

Today, many would still like to pay cash, if they can, rather than carry more debt.