What is the biggest difference between installment and full payment for buying a car?

1 Answers
LaJocelyn
07/24/25 6:00am
The biggest difference between full payment and installment for buying a car is that full payment requires a one-time delivery of all funds, while installment involves paying a down payment first and then making monthly payments for the loan amount plus interest. Comparatively, the price of buying a car with full payment is cheaper than buying with installment. Below is an introduction to full payment and installment for buying a car: 1. Full payment: Full payment generally does not incur additional fees, such as service charges or deposits, making it relatively more cost-effective. However, the financial pressure of paying the full amount at once is also significant, and most families may not be able to afford it. 2. Installment: Installment is currently the most common method of purchasing a car. After signing a car loan agreement with the bank, it typically involves 36 months of monthly payments. After paying the down payment, you make monthly payments, which include corresponding interest fees. Therefore, the total cost of the car will be higher, but the financial pressure is relatively smaller.
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