No method of purchasing a car is categorically better than the other. Instead, your circumstances and priorities will dictate the way that's best for you.  For those that want to own a car straight away and have the freedom to make adjustments to the car or even sell it on in quick succession, buying a car in one lump sum is a good option, providing that you have the money saved up and can afford the car. This option is also good for those who may need a better credit score and thus will be less likely to get accepted for finance.  However, if you still need to get the capital to pay for a car all at once, paying for it in instalments could be the best option for you. It makes the car more affordable, and it's also easier to budget around as well. Plus, if you've managed credit well in the past, you may also get a good rate, making it an even better option.  These examples should illustrate that finance is excellent in certain situations, so take stock of where you're at and figure out if car finance is the best option for you.