WHAT IS MORE CONVENIENT?

What's the best and the most convenient way to buy a car?

People say that buying a car in full cash is better than any other kind of payment method available. Talk about practicality, paying in cash is no question the best there is... but what if you don't have the full cash yet and you just want to settle with installment plans.

Is it still practical?

When you buy a car it's always important to consider the factors that you should know and be aware of.

MONEY AND TIME

If you purchase an auto in full cash, you are considering the real monetary value of the car you're buying... You basically saved more money here...  but if you don't have the money yet then you are most likely considering the time that you need in paying the car in an agreed period of time.

The good news is even if you take installment plans, you can already drive the car. Everyone who wishes to take this payment method is already entitled to drive the unit they want to purchase but all the legal papers are not yet in your hands.

John has been a corporate worker in a business firm for a long time. He plans to buy his first car out of his savings and salary but the car that he wants to drive is totally out of his budget, so he took the installment plan instead. John has considered the time he needs to pay the auto over the real money value of the car he's buying. Anyway, John will still be able to drive the car once he shells out money to pay the downpayment.

A good decision will always depend on whether which factor favors you the most.

Here's a short reference of the advantages and disadvantages when you consider these factors.

MONEY (for people who wants one time payment)

  • Pay in full cash, you own the car on-the-spot
  • All legal papers complete with additional freebies
  •  NO Headaches for the monthly dues.
  •  A bit heavy for a regular guy's pocket.


TIME (for people who wants to pay light)

  •  Pay low for the downpayment.
  •  Not all legal papers are handed to you yet
  •  You have all the time to pay for it lightly every month. 
  • Ready yourself for a 3 to 5 year monthly payment plans


Now, think about it, which headache rather factor would you consider?