{"id":820358,"date":"2019-12-05T12:28:14","date_gmt":"2019-12-05T17:28:14","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=820358"},"modified":"2025-02-19T14:13:06","modified_gmt":"2025-02-19T19:13:06","slug":"buy-car-with-cash","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/car-loans\/buying-a-car\/buy-car-with-cash","title":{"rendered":"Buying a car with cash"},"content":{"rendered":"

Buying a car with cash means you won’t have to pay interest and fees on a car loan. Plus, you’ll fully own the car when you drive it off the lot. But you’ll need to consider more than just the sticker price when determining the total cost of the car.<\/p>

Do car dealers accept cash?<\/h3>

Although there’s no law prohibiting it, many car dealers don’t accept cash. There are several reasons for why buying a car with cash is difficult to pull off:<\/p>

1. It’s uncommon.<\/strong><\/h4>

For starters, reputable customers typically don’t pay in cash. While there’s nothing inherently criminal about making a large purchase with cash, criminals often prefer to pay in cash because it’s quick, anonymous and not easily traceable. Buying a car with cash doesn’t give sellers access to buyers’ personal banking information or financial history \u2014 which is helpful for people who have something to hide. Car dealers may be cautious with cash purchases to avoid handling “dirty money.”<\/p>

That being said, if you’re thinking of how to buy a car from a dealer with cash, there is some wiggle room. To start, you may find a dealer who’s willing to accept cash up to a certain amount \u2014 say $5,000-$10,000 \u2014 after which, you’ll have to pay by card, bank transfer, cheque, or financing.<\/p>

2. It’s more complicated to handle.<\/strong><\/h4>

Cash must be counted, securely stored and manually deposited at a bank. So do cheques and money orders, but these are safer to carry around because only the person\/business to whom the cheque or money order is made out to can deposit it. Credit payments, debit payments and electronic funds transfers are settled digitally and don’t require dealers to handle physical money at all.<\/p>

3. It’s easier to steal than digital funds.<\/strong><\/h4>

If you’re buying a car with cash, handling large amounts of money could tempt employees to grab funds and run. While car dealers may not expect their employees to commit theft, it’s safer to keep on-site cash to a minimum or only deal in electronic funds, especially when vehicle purchases can run in the tens of thousands of dollars.<\/p>

How to buy a car from a dealer or private seller with cash<\/h3>

Follow these steps to get the best deal when buying a car from a dealer or seller with cash. The same guidelines apply for both, but if you’re buying a car from a private seller with cash, you won’t have an option to trade in.<\/p>

1. Start saving up.<\/h4>

If you don’t already have the money on hand, start setting aside money from each paycheque for your new car. You might want to consider opening a high-interest savings account just for your car savings. You’ll collect interest on the money you deposit and won’t be as tempted to touch the funds.<\/p>

Having trouble figuring out how much to save? Budgeting apps like Mint can help you figure out how much money you can afford to set aside and track your progress.<\/p>

2. Research cars.<\/h4>

If you don’t already have a specific car in mind, think about what you’ll need to use it for and go from there. Is it only you or do you need to drive your family around? Do you use it to get around town or are you interested in long trips?<\/p>

Consider these questions to narrow down the type of car you’re looking for. Also, weigh whether you want a used car<\/a> or a new car. Used cars often cost less and lose value at a slower rate than new cars, but you’ll have fewer options to choose from and typically have a shorter warranty.<\/p>

3. Calculate the total cost.<\/h4>

Once you have a car in mind, research how much you need to have saved up to avoid financing. Consider the following costs when buying a car with cash:<\/p>