What is the best way to pay for a used car?

By Product Expert | Posted in Finance on Wednesday, March 7th, 2018 at 6:02 pm
people shaking hands while one person hands the other money and a hand holding out a credit card

Methods to use when paying for a used vehicle upfront 

There is a lot to consider before you buy a vehicle. You have to decide what style of vehicle you want, which features it needs to have, and how you’re going to pay for it. While most drivers will need to finance some or all of their vehicle purchase, there are plenty who will be putting a down payment on their vehicle. When you’re paying up front for your car, there are a variety of ways that you can pay.  

The most efficient way to pay for your vehicle is to bring a cashier’s check, which is more secure than a personal check, and guarantees that the funds are actually available. If you are going through a bank where you have an account, they will draw the funds needed from your account, but if you’re going to a bank where you aren’t an account holder, you’ll need to bring the payment in cash, as well as enough for any additional fees. Do not just walk to the dealership with a cashier’s check for a random amount of money. A cashier’s check needs to be made out to the recipient, and you’ll need to know exactly how much you’ll be paying for your vehicle. You could also choose to pay for your vehicle using cash, though many people feel uncomfortable carrying around the amount of money that is needed to buy a car.  

Two people exchanging money

[Related: Putting a down payment on a used vehicle]

Can you pay for a car using a credit card? 

When it comes to payment, many people no longer use cash, choosing instead to put everything on either a debit or credit card. When you’re making a down payment on your vehicle, you might be able to use a debit card, but it isn’t likely. Before you go to purchase the vehicle, ask somebody, and if they say no, make other arrangements. When it comes to buying a vehicle with a credit card, you’ll need to ask at the dealership first to make sure that they’ll allow it.  

While there are some rewards benefits to making a large purchase on a credit card, like airline miles or cash back, you’ll want to make sure that you’re able to pay for everything that you’ll need to without hitting your limit. If you’re using a credit card so you can pay off your purchase over time, it might be smarter to consider financing through your bank or at the dealership. When you buy a used vehicle from OkCarz, you’ll have access to financing options regardless of your current situation. Learn more about your financing options, or even apply for pre-approval online at the OkCarz website.

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