The decision to purchase a car is both exciting and significant. Beyond the model and make, there’s the vital financial consideration that can greatly impact your present and future. The obstacle for most car buyers is whether to opt for car finance or to buy outright. In this guide, we’ll explore the pros and cons of each choice, and provide insights to help you make the decision that’s right for you.
Buying a Car Outright
Pros
Paying for a car in full gives you immediate ownership. This means that the driver has total control over the vehicle without having to worry about monthly payments or the long-term commitment of a finance plan.
By avoiding finance, you also side-step interest payments. This can provide significant savings compared to the total cost of a financed car, which might far exceed the vehicle’s market value over time.
Cons
The most apparent drawback of buying outright is the initial financial hurdle. Stumping up the entire asking price is a significant figure that many may not have readily available. Buying a car outright can also limit the options available. This is due to budget restrictions resulting in buyers opting for a less desirable vehicle or stretching the wallet beyond comfort to get the desired car.
At Car Lease 4 U we understand at times it may be a benefit for your company (or you personally) to buy outright. This may be down to you having savings, or maybe your company is cash rich and you want to reduce a tax bill.