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Buy a Car Outright vs Finance a Car

  • 2 Feb, 2022
Buy a Car Outright vs Finance a Car

At AutoCoinCars we have been in the automotive industry for years! While many customers look for a certain brand, model, size of the car, engine power etc, we know that 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. Buying a car is a big decision to make and is a big investment.

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

Buy a Car Outright/In Cash

Buy a Car Outright vs Finance a Car


You will own the car

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

No interest payments, you pay what you pay

Whilst you may have to save up for a while and make a big investment to buy a car outright, it does mean that you only have to pay that cars price tag, no more, no less.

Cheapest buying option

Buying outright is the cheapest way to buy a car. 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

This is a great part of owning a car! Drive as much as you want, do whatever you want, go wherever you want to go with your new car. With financing, there can be monthly or yearly mileage restrictions, which, if you exceed can land you with a fee.

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 and do final checks on the car, you will then pay the rest of the invoice and collect your new car. There are no finicky contracts to deal with!

Modify/do what you like with the car

Once you buy a car outright it is yours to do with as you please. 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

Owning a car means you can sell it when you need or want to. Buying a car is a large investment to make, should you need money for something, you have a valuable asset that you can sell when it suits your needs. Or simply sell it when you want to upgrade or change automatic used cars for sale, you are not tied into a contract.


Depreciation of value

Almost as soon as you buy a car it loses value. If you were to go on and sell it you are highly unlikely to make money on it. 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.

If you want to keep your car till it no longer runs, then this is not as much of an issue. However, if you like to change cars every few years then we would recommend finance over buying outright as it will be the better option financially.

Hefty investment

Buying a car outright is a large investment to make. Not everyone has the luxury or ability to save up for a full price car. 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

Buy a Car Outright vs Finance a Car - Auto Coin Cars


Manageable payments

Monthly payments are the average persons' bread and butter as they are a safer financial option for the majority of people as opposed to a bulk payment. Not everyone is in a position to make a large payment, so manageable monthly payments can be a good option.

You could get a better car

This all depends on your financial situation and what you could reasonably afford on a monthly basis. 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

Having proof of sensible money management can improve your credit score. If you keep up your monthly payments in a timely matter, don’t miss any and complete your finance contract without any hiccups this can help to improve your credit score.

No stress of selling the car

Selling your car can be such a hassle! There are so many options to start with, part-exchanging, selling to a dealer, private selling through social media or a platform such as AutoTrader.


High-interest rates

Financing a car is generally the most expensive way to have a car. 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

Whilst financing can have a positive impact on your credit score, it could also negatively impact it. This all comes down to if you keep up your payments and if you make them on time. 

Mileage limits

With a car finance contract, there are generally monthly or annual mileage limits. If you are someone who likes spontaneous trips or travels long routes frequently then you will need to watch out for the clause on mileage. Going over your contracted agreement could lead to hefty fees.

No modifications

Modifications are a no go with a financed car. You cannot modify the car in any way otherwise you risk fines. You also have to keep the car in good condition, if it 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 that you are going to a mechanic for repairs who may not be the cheapest option for you.

You could get stuck in a loop of constantly financing a car instead of owning one

Paying a car by financing it monthly could mean your money is quite tight each month, this could leave little room for savings. If you ever wanted to buy a car outright this may not be possible if you can’t save up enough due to your monthly payments. This could mean that when you want to move on to your next car, your only option is to finance again.

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. Financing is something you need to think through very carefully before entering a contract.


If you’re still struggling to choose between buying a car outright or financing after reading our advantages and disadvantages then think of it this way…

To be sure you aren't losing out on money when looking at cash vs finance, compare the total amount payable by you, the customer, for the finance scheme with the total cash price of the car.

Whilst we feel buying outright is the better option all-round, regardless of our thoughts, your financial situation comes first. Make the right decision for you.

At AutoCoinCars we are still looking into cryptocurrency financing. However, you can buy a car outright with crypto from one of our amazing partnered dealers across the UK!

Check out our dealers or browse our stock here.

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