Should You Buy A Car in Full Or In Payments?

Car buying

Buy A Car in Full Or In Payments | Tips for Buying a New Car

So, the time has come. You’ve finally gotten tired of that old beater car from the 90’s that religiously makes weekly routine visits to the mechanic, you’ve done everything you could to revive it’s glory days. However, that sunshine just isn’t shining quite as bright anymore. Or maybe you’ve witnessed everyone else around you struggle with their vehicles, so you decide to jump to the big leagues and get a much newer model with all the bells and whistles. You’re thinking you’re going to be the talk of the town, rolling in style, shades on, top down with your worries blowing away in the wind or just hiding from the day’s hassles with that amazing tint job. Whatever you think comes with the newer vehicles, you’re probably right. But at what cost? There is a significant difference in paying for a 1998 Toyota Camry compared to a 2018 KIA Optima. It’s all about how comfortable you are in terms of payments (Monthly or all at once), and how likely you are to keep up with the car’s maintenance on a regular basis. Because not all vehicles are built the same and all require a different form of maintenance. However, if maintenance is not a factor for you, then I’ll no longer waste your time. Let’s get into what matters most.

Payment Types | Best Tips For Purchasing a Vehicle

There are many ways to pay for a vehicle over time. If you purchase from a major dealership in town then more than likely you’re either financially able and paying up front in total, or like most of us, on payment plans. However, if you’re at your local mechanic who happens to be your dad’s close friend who fixes and sell cars, you might be able to do “I-owe-you’s” and some let you pay whenever you can.

But typically it’s either two options; Pay all up front or monthly payments. Your choice.

  • Paying all upfront –  This an option that a small number of people choose for the newer models and even for older models. If you are someone who is attempting to pay all up front, let me start by saying thank you. From the bottom of the economy’s heart, we appreciate you. It may hurt right now depending on your financial independence, but you’ll be proud you paid in full later down the road. Picture this. Pay now, worry no longer. Most people know they should choose this option, but then worry kicks in, so they back out and choose monthly payments. Usually, they think to themselves ‘’That’s very easy to accomplish’’. Not realizing you’re already paying way more than that car’s actual worth and that due date seems to come a bit quicker than usual if you’re on monthly payments.
  • Monthly Payments – And they say hurricanes are the most damaging natural disasters. That’s nothing compared to the storm these dealerships consistently hand out in payment form. I can’t say it’s evil because at the end of the day that’s how they stay in business and you can still find great deals through the monthly payment form. However, for the most part, these will bring you nothing but future headaches. Sure you can ride out into the sunset with your new car today, but in a few months, all you’re going to see when you look outside is a storm front. Making monthly payments isn’t as easy as it sounds. Basically, your thought process is ‘’Oh I have 30 days to come up with ____’’.
True. Sadly, however, that’s typically not how most people are actually wired. Usually, they wait until the last couple weeks to come up with the entire amount, instead of taking portions out of each pay period. So then the storm hits right over your house and you’re left wondering how to squander up $400 in 2 days. That $400 instead of the $10,000 upfront isn’t looking so appealing now is it?

Here’s what you can do

How to but a car Before you do anything that is mentioned in this article, I personally would never buy a new car from a dealership. If you haven’t already purchased, I’d suggest going onto Facebook Marketplace and or Craigslist to look for a solid 2010-13 car that is still modern and sturdy. They aren’t priced at $20,000 like the dealerships. Typically they range from $2500-7000 with it being used. Now you have no choice but to pay in full and it comes at a much cheaper price! Using Facebook and or Craigslist allows you the power of negotiating and getting the price down as much as possible, unlike dealerships that are firm with their sky high prices. Also, use other resources such as asking around. Maybe a friend knows someone or another source that can assist you in your search. I would try my best to cover all of your possible bases before stepping onto any dealership lot. Also, another option, if you don’t quite have the funds for a car right now, is to take public transportation and save until you can get a cheap one. It doesn’t need to be fancy and thrilling, just something to get you from A to B.

Something to remember

The more and more I live on this earth, the more and more people I see who think the value of a person is through what forms of material he/she has (Cars, houses, clothes, etc). Also, I see that people tend to think that once I get this new vehicle, I am the stuff around here! Negative. The value of a person comes from their character, their will, their contribution to society and their overall effect on others. Not the car he or she drives. A wise man once said, ‘’The next time you arrive at a stop light, look around. Once you look around, 9/10 all you will see are payments, payments, and more payments. Now I am not saying anything is wrong with making payments, but 70% of those drivers struggle to pay their lights, their mortgage, their electricity, complain about bills constantly, and are always trying to figure out why. All to impress people that could care less…’’ The moment I heard that, my whole perception of life changed. Because I was one of those drivers. I sold my car, paid the remaining off, and purchased in full a simple runner that I have yet to have problems with. In addition, I had much more financial freedom than before. Now please don’t get me wrong, I am not saying that since you’re making payments that you’ll regret it. No. I am saying if your reason for purchasing a vehicle is to impress even though you can’t afford it, then this article is for you. Depending on the decision you choose (Upfront or Monthly) it can affect you directly for a very long time. Positively or Negatively.

The Pros and Cons of Both Sides | Car Payment Plan Tips

Monthly – As mentioned above, depending on your financial situation, this can either make or break you. The good thing about monthly is that obviously you won’t have to pay all up front. Most of the time the dealership handles the minor repairs and maintenance for you. However, there is a flip side. Regardless if you are financially stable or not, $500 is a good amount of money for anyone and it can be used to go other places per month rather than overpaying the dealership. You can also develop bad credit if you miss payments, and over time those payments add up.   Upfront – I really don’t know if I can mention a negative about paying all upfront except maybe that all of the vehicle’s maintenance responsibility falls on you now and that it takes a bigger chunk out of the bank account right away even though it pays off later. In conclusion; There are many great dealerships and local lots that offer great monthly rates and are honest to their word. So if you were to choose monthly, it wouldn’t be the end of the world unless you were making $25,000 and you bought and Lamborghini. Other than that, keep a strong eye out for good deals, read the fine print and all the details and search out advice from those that have been through that cycle. The more you know the better you’re off. Take time to make your decision and never rush into a purchase. Stay calm under pressure and don’t let the bells and whistles take you hostage. Thank you for stopping by, we appreciate it. For more information and to sell your car today, head on over to our instant offer page here at Cash for Cars. Best wishes,

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