You can use money from your bank or savings accounts to buy the car. You can also combine your money with another type of finance e.g. part loan / part cash.
Benefits
- It will avoid or lower the cost of interest payments
- If using only cash it will mean you don't need to depend on being approved for finance
- You own the car outright so you are free to sell it or make modifications to it
Things to consider
- You'll need to have the full value of the car up front
- You can't spread the cost with monthly repayments
- You'll lose any interest that would have been paid on your savings but won't pay interest you would have to pay on a loan
- It's a good idea to keep some savings aside for unexpected expenses