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Finance or Purchase? How should you buy your next car?

AutoCoinCars have been in the automotive industry for years! While many customers look for a certain brand, model, size of the car, engine power etc, at the end of it all, it comes down to cost.

The number one priority for most customers will usually always come down to the price tag.

Let’s take a look into the advantages and disadvantages of financing a car or buying a car outright.

Buy a Car Outright

Advantages:

You will own the car.

Owning a car is a great feeling! You don’t have to worry about monthly payments, interest rates, etc.

Cheapest buying option.

If you chose to finance you would have to pay a certain amount of interest and potentially a bulk payment at the end of the contract as well. With an outright sale, you just pay a set amount.

No mileage restrictions.

Drive as much as you want, do whatever you want, go wherever you want to go with your new car.

Simplest method.

Buying a car outright is very self-explanatory. In most cases, you will test drive the car, leave a deposit, they will prepare the car, pay the rest of the invoice and collect your new car.

Modify the car.

If you want to fit a new exhaust, install a new sound system, adjust the suspension, you can. Whatever changes you want to make, you can because it is your car!

Sell it at any time.

Should you need money, you have a valuable asset that you can sell. Or simply sell it when you want to upgrade or change cars.

Disadvantages:

Depreciation of value.

Almost as soon as you buy a car it loses value. Within the first two years of purchase, the car loses a significant amount of value. From here on, every year, or every 10,000 miles the car will depreciate in value.

Buying a car outright is a large investment to make.

It could be a risky move for you to spend such a large amount of money if you do not have a comfortable amount to fall back on in case of an emergency.

Finance a Car

Advantages:

Manageable payments.

Not everyone is in a position to make a large outright payment, so manageable monthly payments can be a good option.

You could get a better car. 

If you want to buy a car outright you are limited to your budget. However, with finance, you could get a better car by choosing not to buy it outright. 

Could improve credit score.

If you keep up your monthly payments in a timely matter, don’t miss any and complete your finance contract this can help to improve your credit score.

No stress of selling the car.

Selling your car can be such a hassle! With a financed car you simply hand it back to the dealership.

Disadvantages

High-interest rates.

Depending on the length of the contract, cost of the vehicle, and various other factors, there is always an interest rate that goes with monthly finance payments.

Could negatively impact your credit score.

Financing could harm your credit score if you don’t keep up your payments on time.

Mileage limits.

With a finance contract, there are monthly or annual mileage limits. Going over your contracted agreement could lead to fees.

Modifications are a no go with a financed car.

If the car is not returned in a reasonable condition according to your contracted agreement you will have to pay fees.

Damage repair costs can be more expensive.

Finance cars usually have to go to specific garages that are approved by the lender. This could mean you are going to a mechanic who may not be the cheapest option.

Endless loop of financing a car.

Financing a car could mean your money is quite tight each month, this could leave little room for savings.

Difficult to get out of the contract if you needed to.

Entering a contract means one thing in this world…you either complete it, or you will have a tough or expensive time getting out of it.

At AutoCoinCars you can buy a car outright with crypto, check out their vehicles for sale here.

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