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The author, Allison Nichol Longtin.
Allison Nichol Longtin
My car will be used for business, which means I considered — but decided against — a lease.
When my car salesperson learned I was paying with cash, they tried to change my mind.
At the end of the day, buying a car is taking a risk, and I’m glad I went ahead with what I wanted.
I turned 37 this year and bought myself my first ever car for my birthday, a full 21 years after some people get their license and start driving. I’m very much of my generation of millennials who grew up in big cities and never learned to drive because it just didn’t make sense. But I left big city life for small town living in the early days of the pandemic and knew I’d need to learn to drive.
I started saving up, taking lessons, doing research, and making spreadsheets with numerous tabs. After speaking with my financial advisor and accountant, it was clear that I was looking to buy a used car outright, in cash. I’d been saving up for years and was in a privileged position to not need financing to lease a vehicle.
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I’m not looking to trade up anytime soon
If I can avoid paying interest on something, I will. Whenever I have the money to pay for something outright, that’s what I’ll do. This was my fortunate position when I bought my car. It made my search much more straightforward. Budgeting was simpler as well. It was one less tab to add to my spreadsheet.
My car is partially a business expense for my sole proprietorship small business. I spoke with my accountant about leasing a vehicle, as this is the option that many business owners opt for. In the end, the bookkeeping is a little different, but the accounting, especially when it comes to tax filing, is pretty similar.
As a new driver, what I was looking for was a vehicle I could get really good at driving. I did a ton of research before buying my vehicle; it’s not something I want to do again any time soon. Many people who lease their vehicle do so with the intent to trade in or trade up within a few years, and that’s just not for me.
My car salesperson wasn’t enthusiastic about it, but I knew what I wanted
You know that old saying, “cash is king?” I’m learning that it used to mean a lot more than it does today. Or so used car salespeople would have me believe. I have a very low tolerance for debt, having learned my lessons the hard way in my twenties. I know that to get good credit you have to use credit. To that end, I use my credit card for most of my purchases and several of my monthly bills, but I always pay it off to $0 on time. I have a mortgage that I know is considered “good debt,” but I didn’t want yet another monthly payment with interest hanging over my head.
So, once I’d narrowed my car search down to two vehicles and went for a test drive, I was admittedly a little surprised when the salesperson suddenly seemed less interested in selling to me when I revealed I’d be paying cash and didn’t need financing. This extra purchasing power only benefitted me, not the dealership that would ultimately make less money off of me in the long run. Still, it felt good to say that I was paying cash and politely decline financing options.
This is a big purchase, but I’m happy with my decision
Financial decisions almost always require some amount of risk. You can do all the research and make all the spreadsheets and pros and cons lists you like, but big financial decisions like buying a car or a house are always going to have some level of risk. No one has a crystal ball, so once I’ve done all my research, made the spreadsheets, and lists, I ultimately have to go with my gut. I’m not saying you shouldn’t do your due diligence, but I am saying that you eventually have to decide what’s right for you.
When it comes to big financial decisions, it’s easy to become overwhelmed with fear or to give too much power to the voices in the peanut gallery. Do your research, listen to what wise people have to say, sleep on it, and then make the choice that most closely aligns with your values.