Buying a new car is a major financial commitment, particularly if one has to raise car finance to purchase the vehicle, so if possible, should those looking for a new vehicle pay cash?

A recent Motley Fool article questions whether freeing up cash from other investments is a more sensible option than taking out the cheapest possible car finance. The article urges consumers to think long and hard about divesting assets to purchase a car .

Paying cash does have some enormous advantages, however. For instance, there is no need to worry about costs of repayments, or owing more than the car is worth. There is no credit exposure and more haggling power, the article argues.