It is also a great idea if you are buying a cheaper car to purchase from someone from Craigslist or online. You can pay in cash and avoid the taxes, you would normally pay on a car purchase. If you are buying a $10,000 to $20,000 car, taxes can be up to $2,500 to $6,000. This raises the end price of the car your actually buying. Depending on the buyers situation if they are hurting for money