What would be the main benefit of paying in cash for a car instead of taking out a loan?
The main benefit of paying cash for a car instead of financing is that you will own the vehicle outright without any debt or interest charges. This saves you money overall compared to financing the same vehicle.
Paying cash also gives you full ownership of the car immediately. You don't have to make monthly payments for years or wait until the loan is paid off to have the title. Also, buying with cash simplifies the transaction and paperwork involved. You don't need to go through long and confusing financing applications, credit checks or loan approval processes.
The biggest catch is that few people have enough cash savings to buy a car in full. Paying cash requires disciplined saving over an extended period. But if you can pay upfront, doing so gets you an owned vehicle and saves on interest costs versus borrowing.