 TITLE: What Is the Best Way to Pay for a Car? CONTENT: Use Your Personal Savings to Pay for a Car\n------------------------------------------\nWhile it might be unrealistic to save enough cash to buy a brand-new car outright, it's a wise strategy to pay with cash if you're able to buy an inexpensive used car. By paying with cash savings instead of taking out a loan, you save money by not paying interest.\nTry to plan far enough ahead that you're able to build up a healthy savings account. Think about how much you'd be paying every month to finance a new car and set aside an equivalent amount every few weeks. In two or three years, you'll have a significant sum of money built up that could totally cover the cost of a vehicle (or at least significantly reduce the amount you'll need to finance). If you find someone to buy your existing car, proceeds from the sale can go toward funding the purchase.\nIf you already have a savings account in the form of an emergency fund, it's usually best to avoid using it to pay for a car unless you're in a really tight spot—your car died and you don't have another way to get to work, for example. It's best to keep that money there for true emergencies, and instead use general savings intended for big purchases. END