Why a Consumer Expert Recommends Buying Cars in Installments Even If You Have the Cash

New cars can be bought in installments even if the buyer has the full amount in cash. That's according to Majed Mostafa, an exhibition and marketing expert, who points out that around 70% of vehicle sales at dealers and distributors are done through installment plans, versus only 30% in cash. That gap reveals a clear shift in Egyptian consumer behavior.

Why Egyptians Prefer Installments Despite Having the Liquidity

Keeping cash on hand gives buyers more flexibility. Mostafa explains that paying the full price of a car in cash can drain a significant portion of the buyer's funds, while installments allow the cost to be spread over several years with the possibility of investing the remaining amount. He adds that car prices today are much better than expected in the future, making a purchase now—whether cash or financed—a more sensible decision.

But what should someone with the full amount do?

Investing in the Bank While Paying Installments

The exhibition expert advises those who have the car's value in cash to consider keeping the money in the bank and benefiting from the return, while obtaining financing to buy the car. He explains that this method allows the purchase cost to be spread over a period of up to five or six years, depending on the financing system used, with the potential to earn a return on the retained liquidity that covers part of the installments. This way, the buyer doesn't lose all their money at once but maintains long-term financial capability.

Installments Give Consumers More Breathing Room

Buying in installments gives a wide segment of consumers the opportunity to own a new car without heavy financial pressure. Mostafa notes that spreading the cost over monthly payments reduces the burden compared to paying the full amount at once, opening the door for groups that couldn't afford cash purchases. But the final decision remains tied to each buyer's circumstances, the cost of financing, the expected return from keeping the liquidity. The repayment period and monthly installment amount.

The key question remains: is it better to pay the full amount or install it and benefit from the return? The answer varies from case to case, but the numbers say 7 out of 10 buyers choose installments—a strong indication that cash liquidity has become a priority even in the car market.