Should I Purchase My Used Car Up Front or on Finance

When you purchase a used car, one of the big decisions you will have to make is how you are going to pay for it. There are benefits and limitations to both paying with cash and paying on finance, but it will essentially come down to your own preferences and budget.

Paying for Your Used Car Upfront

Cheapest Option

The main benefit of paying for your used car with cash is a big one: it is the cheapest option available. The main reason for this is it means you won’t have to pay interest, although if you can find a good rate, you won’t be paying much more through car finance anyway.

Become the Owner Straight Away

An upfront payment also allows you to become the legal owner of the vehicle as soon as you’ve got the keys, whereas, with a finance plan, the car will officially belong to your finance provider until you have made all of your repayments.

Just One Payment

Paying by cash removes the worry of having to keep up with payments for months to come.

However, in many cases, paying with cash upfront is just not viable. A car is one of the most expensive things you are likely too ever buy and it takes a lot of time and dedication to save up for one.

Paying for Your Used Car on Finance

Make the Cost More Manageable

Car finance plans allow you to spread the cost of your used car into smaller, more manageable monthly payments. It is true that only having to make a single payment can be less stressful for some people, but if you are good at looking after your money, there really isn’t anything to be concerned about.

 Better, Faster, Stronger

Finance allows you to break down a car’s cost, which often means that you will be able to afford a better model, which might have been out of reach if you were paying upfront.

Get Behind the Wheel Straight Away

One of the advantages of paying cash mentioned above was that you instantly become the legal owner, but you could be saving up for a year or several before you can afford the vehicle, which could be the same length of time as a finance agreement. The difference is, if you’d financed the car, you would have been driving it during that period.

Apply for car finance with Whitestone Garage here!