Getting a Car: Buying New, Buying Used or Leasing?
When in the process of getting a car, the majority of people are facing a dilemma whether they should buy a new car or go with a used one instead. Furthermore, those who tend to spend more time researching the matter consider an option of leasing one, as well.
What this basically means is there are three options, all quite different and all with their pluses and minuses, and making the right choice could mean a world of difference to their future owners. With this in mind, let us consider all these options in more detail in order to make the final choice easier.
Buying a new car
Walking in a car shop, signing a few papers and driving out in a new vehicle sound as easy as ABC, you must say. Although this may often be true, buying a new car features several options itself and they can be quite different in nature.
Financial Steps to Take Before Buying a Car – NerdWallet
The easiest way is to pay in cash and it will usually allow you to have the best price possible. However, most people simply cannot afford cash payments and need to go with a car loan in order to make it possible. Getting well informed about car loans in general and what different banks are offering is required so as to score the best deal.
Buying a used car
Getting a used car is a better option for those who have a tendency to change them often, particularly for those who can’t afford to purchase a brand new vehicle. Researching the market will certainly help you find the best options available. Some vendors offer loan payments and they may be of interest, as well. Also, do not miss the opportunity to negotiate the price and save additionally.
Attending car auctions is another great way of finding a good deal, provided that the car you are interested in has been thoroughly checked so that is does not have any hidden flaws, something that does not come naturally with used car market.
Car leasing
Leasing a car instead of buying it used or new is another interesting option to be considered. In short, leasing is renting a car for a certain period of time commonly referred to as ‘the cycle’. Usually, after two cycles, the car can be bought for the price set at the beginning of the lease period.
This sometimes proves to be a great feature since car lease users can end up profiting from the whole deal in the end. Also, those who leas their cars are responsible for routine maintenance only and not repairs and other maintenance work. Still, the higher level of insurance that the leased cars may require usually increase the overall costs.
Comparison
As it was said at the start, all three options have their ups and downs. Leasing a car practically means that you are driving a practically new car under full warranty, which comes with a price.
Getting a car at a used car market can bring substantial savings if you are extremely careful and a bit lucky, as well. Lastly, buying a new car means investing the most initially, owning a new vehicle and taking full responsibility for what happens to it next.
Whichever choice you decide to make, go through the numbers with extreme care. Include all necessary data into the equation, initial costs, maintenance, insurance and guarantees.
How Getting a Car Loan Affects Your Credit Report – NerdWallet
Finally, think about how long you plan to hold on to the car and what you plan to do with it then. When you take all of these things into careful consideration, you will surely make the right decision.
Author Bio: Lillian believes that the question of business goes far beyond the maximization of profit through different money-grabbing ploys. Instead, she likes to think that ethical principles should be at the core of every commercial venture, paving the way for much more balanced distribution of wealth on a global scale.
Category: Car Purchase
