What Does Full Payment for Car Purchase Mean?

[DeCatherine]

Full payment for car purchase refers to buying a car by paying the entire amount in one go, without taking a loan. It is a payment method where the buyer pays the full amount in cash, including the vehicle price, purchase tax, license plate fee, insurance, etc., without needing to finance the purchase. Additional information: Below are the differences between full payment and installment payment for car purchases: 1. Cost difference: The advantage of full payment is that it can be settled at once with no future concerns, but it requires a large sum of cash upfront; whereas financing a car requires paying additional fees and interest on top of the car price, with the benefit being that the owner can drive the car home after paying only a portion of the cost. 2. Insurance difference: Full payment requires payment of purchase tax, license plate fee, compulsory insurance, and vehicle tax, with insurance being optional; financing a car requires full insurance coverage, as mandated by banks, which is the same nationwide.