Outright purchase is simply paying for your new vehicle in cash – and it’s a simple and straightforward method that is highly recommended as long as you have the cash for your vehicle. It doesn’t involve any financing at all, and most of those who have the available money take advantage of it because it comes with a few other key benefits as well. If you are thinking of outright purchase for your new vehicle, it does pay to know what it really is and what you can expect. Here, then, is your overall guide to outright purchase: everything you need to know.
The Advantages of an Outright Purchase
As already mentioned, there are several advantages you can gain from an outright purchase. When you pay for your vehicle outright, it’s a done deal as soon as money is exchanged – you can simply drive the vehicle out of the car lot, and that’s it. There are no credit checks involved, and there are no lengthy contracts or agreements to read through.
But the most lucrative benefit of an outright purchase deal is you don’t have to end up paying monthly for your car. Since you are buying it, you don’t have to worry about being able to afford monthly payments, and it doesn’t come with any interest. Most financing deals will have interest rates, and with this, you will more than likely end up paying more for your vehicle in the long run. Here’s another aspect about an outright purchase for your new vehicle: with an outright purchase, you can take advantage of some of the best new car deals that you may not otherwise get if you go for financing. A lot of dealers offer outright purchase deals that are not offered with a financing deal.
What you Should Consider
But there are other factors you need to consider as well. Think about what you want to do with the vehicle and how long you are planning to keep it. If you are thinking of having the vehicle and driving it around for several years – even a decade so you can get the most out of it – then going for an outright purchase may be a good decision because you can definitely utilise your vehicle for a long time.
If you have the means and the extra savings, there is no reason why you shouldn’t go for an outright purchase. This will depend on your circumstances as well. For example, if you have a mortgage to pay for but would like a new vehicle, you can choose to extend your mortgage and then use the additional cash to pay for your new vehicle. If your salary is on the average side but you have high bonuses, then you may want to just simply save and purchase your vehicle with cash once you have enough savings.
You just have to ensure that you have extra funds left over once you already pay for your vehicle. This is in case you have an emergency or need funds for something right away. The good thing, though, is that if you have already paid for your vehicle in cash outright, you can simply sell it if you need cash or trade it in for a different model once you get tired of it.
