Cash or Finance?
Buying your next car is an exciting thought but it can be tricky knowing whether to pay with cash or to finance your vehicle. Of course, it will totally depend on your situation but here are our tips and thoughts.
Cash or finance are the two options you’re presented with when buying a car. Cash being a one-off payment for the vehicle, and finance being payments that are spread out monthly over the course of a year or more.
Buying a car outright can be a good option if you have the cash available and if you don’t want any extra monthly outgoings. It means the sale is done and dusted and you are free to drive away in a car that you own.
Another factor is you pay the price that’s on the car and swerve any interest that would be included in a finance agreement. This means you pay less money in the long run for your car, because you’re not borrowing any money.
It is easy to see why many people think that cash is the best option when buying a car. But is it always the best option?
The short answer is, not always. Financing a car has its benefits too and can sometimes work out as a better option that buying a vehicle outright. Firstly, it means that you haven’t got to find a chunky amount of money to spend on your car, you can negotiate the terms and pay an affordable amount each month.
You may also find you can afford a nicer car on finance than if you were buying it with cash. By spreading the cost, you can get more for your money and a potentially newer, nicer car.
If you can get a good interest rate, finance can often be a better option in the long run instead of having your money tied up in a car. If you want to find out more about car finance in Liverpool or financing a used car, get in touch with our team who will be happy to help.