Do normal people really buy new cars in cash?
Coming from the MiddleClassFinance specifically, I often hear various members saying to “only buy cars in cash” or “never get a loan on a vehicle”
And frankly… is this something people actually do regularly?
I’m not talking about a beater or a used car for 8 grand, I’m talking about brand new 20,30,40,50 thousand dollar vehicles… your just going down to the bank and withdrawing 50,000 in cash to buy a car with, instead of keep it in a HYSA or similar?
From a personal perspective, we have never bought a vehicle in cash, we always finance, however the last 3 cars in a row we have gotten 60 month terms and paid them off early in 3.5 to 4 years via extra payments, which I feel is pretty good in and of itself, if anything proving that the financial situation can sustain these liabilities easily without just dumping savings on something
Edit 1
For those who DO pay for cars in cash, as some stated they even buy $50,000 cars in cash… I assume that means you must have several hundred thousand in savings / checking then? Because I doubt you would dump your last dime and entire savings on a car?
Just seems like a LOT of “middle class finance” individuals have six figure savings , when statistics show that 60% (the majority) of Americans live paycheck to paycheck and actually have no savings