Should You Finance a Car or Buy It Outright?

With the price of both used and new cars on the rise, many drivers are looking for the best options available to them when it comes to financing their new car purchase. If you are in the market for a new car, you might be considering the options of either buying your new car outright with cash or getting a car finance package. Which one you choose will likely depend on a number of factors including how much cash you have to spend on a new car, and what kind of car you want. In some cases, getting finance can sometimes be a savvier option as some finance packages come with additional extras included such as insurance, servicing, and MOTs which can help you save money in the long run. 

Why Buy a Car Outright?

If you need a cheap-ish run-around, have some money saved up, and want to get a car without any hassle, then buying your car outright might be a worthwhile option to consider. The type of car that you can get will of course be dependent on the amount of money that you have available to spend on it, but if you don’t want one of the latest cars or a flashy make, then chances are that you can get a really good deal and walk away as the new owner of a car without any additional payments to make. On the downside, you will need to sort out your own insurance cover, servicing, and MOT, and when the car inevitably loses its value in the future, you’ll lose out if you decide to sell it. 

Why Get Car Finance?

Financing options such as HP car finance from Liverpool Car Centre are becoming more and more popular these days. With most people wanting to get the nicest car available to them, a finance option makes more sense compared to buying outright if you want a fairly expensive car and don’t want a huge immediate dent in your bank account. Hire purchase finance usually lasts for a term of up to five years where you will make monthly payments and then have the option to own the car at the end. Along with this, some hire purchase agreements come with other perks like servicing and maintenance included for the price, so you don’t have to worry about forking out more money when this is due. On the downside, you do have to make often fairly large monthly payments that can go on for years, so it’s a bigger commitment compared to buying with cash. 

Choosing the Right One for You

Which option you choose to finance your new car will depend on your needs and requirements. Carefully weigh up the pros and cons of buying outright vs getting car finance to determine which option is likely to work best for you based on your financial circumstances and the car that you want to buy. 

When it comes to buying a car, there are plenty of financing options to consider. While buying with cash can be a hassle-free option, more and more people are choosing car finance to get a better car and spread the cost.