How to Start Paying Cash for Cars

Tired of car payments? There is an alternative! Follow these steps to start paying cash for cars!

Difficulty: Moderately Easy

Instructions

1. Begin by paying off early the car loan that you currently have. Throw every extra dollar available towards your car payment. If the loan is too large, and is making it impossible for you to make progress, consider selling your car and buying a much cheaper car for cash to start the process.

2. Once you have a paid off car, continue to drive it, while saving the amount of your earlier car payment in a high interest savings account.

3. Once you have saved enough to buy a car for cash, do that, but continue to "pay yourself" the car payment in the savings account and repeat the process of buying for cash as necessary.

Tips & Warnings

• You will probably find that buying with cash will motivate you to buy less expensive cars. This represents an additional savings for you.
• Buying used cars will make paying cash for cars more attainable.