How to Buy a Car with Cash

How to Buy a Car with Cash


– Hey you guys, it’s
Dana and it’s Tuesday, so it’s time to talk about money, and it’s time to talk about my new car and how I paid cash for it and how to buy a car with cash. (cash register bell ringing) All right, so, I have been
driving the same Subaru for 13 years, and the
Check Engine light was on and the head gasket was leaking, oil was leaking, I don’t know. So I used to drive around with a bottle of antifreeze in the car
to fill up the antifreeze when the car started overheating, so I really have been
workin’ this car for years, like much further than it
really should have gone because the head gasket
kind of was leaking five years ago, but I’ve
still just been driving it, keeping an eye on the fluids. And so, the inspection came
up, and the inspection was due. And I knew this was
probably gonna be the time that the car was not gonna make it. It failed inspection. It needed a whole new exhaust system, and so, I was quoted $1,800
for the exhaust system. But then, I went to two different garages, two different mechanics
to get their opinion, to get different quotes
to see if they could bring the price down, to see
if it was really worth it because the Subaru really
was only worth about $1,500, maybe 2,000 if it was
in really good shape. So, I didn’t want to be putting
$1,800 into a $2,000 car. So I had to make the
decision whether or not to keep this car or not. So I decided to purchase
a car and to trade in or to sell my current one. And it was really stressful. It’s been making me ill,
and this has been going on for a while, but I’ve been, like I said, did my research trying to see
if I could first get it fixed, how much it would cost,
whether it was worth it to do that, talked to different people with different opinions if they would think the
car would last longer if I did do the repair to
fix just the exhaust system. Anyway, so, to the car purchasing. So then, I went and I started looking, different places to buy cars: dealerships, CarMax, CarSense where
they have used cars, just local used car dealers,
regular main-chain dealers. Craigslist, I went onto
Craigslist and looked for cars. I called somebody on Craigslist, talked to them about a car. And then, I ended up finding
a certain dealership lot where they had used cars that
were within my price range, my price range being $4,000. So that’s how much I wanted
to spend on a new car. That’s how much cash that I had available to pay for a car. And this is the first time
I’ve ever actually gone in to buy a car with cash. And so, it was really nerve-wracking but exciting at the same time. But I found it within the inventory. Now if you go onto dealership websites, it’s actually really
awesome because you can see their full inventory online. A lot of times, you can click and see the Carfax report as well, like you can see it all there. Because where I live in Pennsylvania, a lot of people are
saying used car dealers or people on Craigslist
are shipping cars up from the South where they’ve
been exposed to flood and they’re reselling these flood cars up in the Northeast. And a lot of times,
the buyers aren’t aware that it was a car from the flood zone. So, it was nice to see
the Carfax report online before going into the dealership so I kind of have an idea of what I wanted to look at before even going in. So I went into this dealership, and I brought my car with me, my Subaru. So number one, if you have a car that you’re looking to trade
in as part of your deal, you want to make sure
you bring it with you. And when you go to the dealership to buy your car with cash, you have to do the two main things that I
think from this experience. You have to be willing to buy it that day. You have to be ready to pay for it, so you want to bring
your checkbook with you and have the money in
your account ready to go. And you have to be ready
to walk away, to leave. Right? Those are two really big important things when you’re buying a car. Being able to walk away
is an important thing in general that you’re willing to do that, but also, that you’re ready
to actually make the purchase. Because when you go in and you have cash, whether it’s actual
cash or you’re gonna be writing a check, or using your debit card if you happen to be able to buy a car. At this dealership, they had a sign that said they would do
a debit card transaction for up to $2,500. So if you had a $2,000
trade-in and you were buying a car and the remaining balance was 2,000, you could have used your debit card to purchase the rest of the car. But aside from that,
they said they accepted personal checks which I was surprised by. I thought that I was
gonna have to go the bank and get a certified check
or have actual cash, right? But you don’t. They accept personal checks. They were totally fine with that. So you have to be able to, like I said, be able to buy it that
day that you’re there and also be willing to walk away. So when I looked at the
car that I was interested in buying, I just was really upfront. The car was listed for $4,900 and I said, “Is there any way you can
lower the price of this car? “I’m looking for the
car to be about $4,500 “and then I would like to get
at least $500 for my Subaru “as trade-in because the
Check Engine light’s on, “it has high mileage, I know
all these things about it.” I didn’t say that part but, “I’m looking for about $4,000. “That’s what I can do. “That’s what I have, and
I’m prepared to pay today. “I have cash.” And so, those two things
I think are important. I think a little bit of honesty, I know people think that
doesn’t make any sense at a dealership, but,
if you have a set amount that you are able to spend,
like you have that amount of money in your bank
account or cash or whatever, then just say, “This is what I’ve got.” And honestly, I think
that really helped me. They ended up giving me $1,000 trade-in for my Subaru, that really, I was like, they’re gonna take it to the auction. There’s nothing in that Subaru. It’s really, head gasket
leaking, it’s not in good shape. And so, I was able to purchase the car within my price range of
$3,900 is what I wrote the check for. All right, so I was really excited. I cannot express how amazing it is to have actual money as
opposed to financing your car. It was such a different experience for me. I just felt so much better
not having to fill out paperwork for financing and tell them how much money I make, where I work. It was just so nice to not have to. They don’t need to know that. It’s none of their business
when you’re just paying for the car. And I think that it helps so much just from a personal
empowerment perspective, especially as being a
woman, that I think it helps a lot to be able to sort
of stand your ground and negotiate the price when you know how much money you have, and
you actually have the money. You’re not sitting there behind the desk waiting to hear back, were you approved. Remember, they walk off,
and you’ve got to sit there, and you’ve got to be kind of nervous waiting for their approval
if you’re gonna get the loan. It’s just such a better
experience when you have cash, even in this case, it’s
a car under $5,000. It’s not like it’s a huge amount of money, but it’s a big amount of money to us. That’s a lot of money, and
I still kind of felt like, “Oh my gosh, I’m spending all this money.” But it was such a wonderful experience. And then after we agreed on the price and the deal went through, then I went and I sat with somebody else. I don’t know, I’ve never
worked in dealership. I don’t know what his title was. But you know the person who prints out all the paperwork for you to sign to transfer the title and all that stuff? Plus, oh also, I brought
with me, I had the title for my car, my Subaru,
I had the title for that that I brought along to
give to them the title. But that guy too, even sitting with him and then writing the check out for the car and giving it to him,
it was so much more easy and just not as stressful. The whole transaction all around just felt so much better to be using cash. And I really wanted to
make this video, you guys, because before I went
in, it was terrifying. And I looked up a lot of videos on YouTube about buying a car with cash and just like the simple mechanics of it
is what I didn’t understand. I know this sounds really weird, but I haven’t bought a new car in years and years and years, or a new used car, new-to-me car, I haven’t
bought it in years. And I felt like, what were
the actual mechanics of, I understand like buying a cash car, I was like, what do I, do
I need a cashier’s check? Do I have actual cash? Do I have to have actual cash
or how does that even work? I was so confused by it. But you can write a personal check. A lot of dealers, you just ask them, “Do you take a personal check for this?” I do think that they are willing to give you a better
price, either knock down the price of the car or give you a higher amount of money for your trade-in if you are ready to just pay for it because it’s easier for
them too, I imagine, if they don’t have to go
through all the paperwork of financing and then find
out that you don’t qualify for financing and the deal falls through. So it’s easier for them
too when you’re just saying you’re just gonna pay for it. You don’t have to have financing. So they are more willing, I think, to give you a better price and it’s just, it’s just such a great experience. But like I said, you can bring cash, but you don’t have to. You can just do a personal check or even a debit card like said if all you owe is,
depending on the dealership, they may have different amounts, but they can take a debit card if you’re gonna be 2,500 or less. So especially if you’re buying a used car, that’s gonna work out
if you have a trade-in. So yeah, so any questions,
down below in the comments. I don’t think I forgot anything. But basically, this car,
I’m hoping it’ll last me for a couple years. It’s a Toyota Camry, which
are really good cars, at 130,000 miles, and it’s
in good shape I think. So I’m very excited about it. The Subaru that I was driving,
the trunk wouldn’t open. So this car, the trunk opens, so I’m like, “Ooh, the trunk opens!” It’s these little things in
life, you know what I mean. And I really just need this car to drive back and forth to work, and that’s really all that
we ever use my car for. And so, I just wanted something that would get me there and back, something very simple, something
that I could pay cash with. And so, it was really a good experience for my first cash car-buying experience. All right, so that’s it, you guys. If it’s your first time
here, be sure to subscribe. I’m here every single Tuesday
talking all about money, and I encourage everybody
to live debt-free, to not borrow money, not only because that’s what the Bible says, but also because it is just so incredibly freeing. It feels fantastic. ‘Cause when you don’t have payments, what you have is money in your account which is really great, right? You can’t argue that. All right, okay, I’ll talk
to you guys next week. Bye!