Finance. Cash. Both lend themselves to car buying, making the decision somewhat complex. Luckily, this doesn’t have to be an impossible choice, and as such, our experts are on hand to help you find out more about buying a car with cash versus on finance. Hopefully, this will help inform your choice going forward.
Should I Buy on Finance or with Cash?
Cars are big investments, even when second-hand. Hence, knowing whether to buy on finance or with cash is paramount. However, if you’ve been feeling unsure about this, the following tips may help.
To begin with, it’s always important to protect yourself when buying a vehicle and to ensure that the car doesn’t have a problematic history. A number plate check can reveal this for you. This history report will conduct over 80 checks on the car, including whether it has been recorded as written off, has outstanding finance, or even how many previous owners it has had.
The Benefits of Buying on Finance
There are numerous benefits associated with buying a car on finance. Perhaps the most obvious of these is simple: it means you don’t have to worry about saving up huge deposits. Indeed, you may have to put down a deposit before buying a finance car; however, this won’t be the whole value. As such, taking out finance makes it far easier to save up for a new vehicle. Moreover, buying on finance potentially allows you to afford more than you normally would; as such, it’s potentially a good option for those looking to upgrade.
Why People Prefer Paying in Cash
Buying a car on finance can offer plenty of benefits; however, it’s worth noting that cash purchases are often considered ideal. There are several reasons for this, with the lack of interest payable being the most obvious. Furthermore, it’s worth noting here that paying in cash also opens up new options; many private sellers won’t be able to accept finance plans, for example, and some places may offer discounts for cash. And, as a further point of note, not having to worry about monthly ongoing expenses can also be reassuring.
As such, there are undoubtedly plenty of different reasons to consider paying in cash over taking out finance. However, the caveat here is also obvious: it requires you to save up a large enough sum of money first. Needless, this isn’t always easy to do. Of course, if you have a previous vehicle that you can trade in or sell, this may be easier to afford.
Always Take Care When Buying
It’s not easy to decide on finance vs cash when buying. Therein, if this has left you feeling unsure of where to turn, there are plenty of options to consider. As part of this, carefully deciding whether to buy on finance could allow you to make the ideal choice for your own needs, too.
In the end, however, it’s worth considering what options are available to you to make an informed decision. For example, if you’re buying privately, you may have no option but to pay upfront in cash; private sellers are unlikely to offer payment plans or loans, although you could look at sourcing these from third-parties.
In any case, whether paying in full upfront or with a loan, choosing a secure sale is vital. Luckily, car history checks can help with this, allowing you to see whether a car has a clean record. In turn, this can help make it safer to find the right vehicle for your needs.
