Why Is Buying a Car on Installments Cheaper Than Paying in Full?

1 Answers
JeffreyMarie
07/30/25 2:08am
Considering the consumer's personal situation, choosing the right car purchase method that suits them is more cost-effective. Below are the relevant explanations: 1. Total Cost: Solely from the perspective of buying a car and with sufficient financial conditions, paying in full is undoubtedly better and more cost-effective. If you opt for installment payments, although it can reduce immediate financial pressure, the total amount spent after repaying the loan will be higher than paying in full. 2. Financial Condition: If financial conditions are limited and paying in full imposes significant pressure, then opting for installment payments is advisable. The extra money can be used to create other value, making installment payments more cost-effective from this perspective.
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