If you’re in need of a new car, then it’s worth taking the time to think about how, precisely, you should get it. There are numerous factors to consider, such as which car you want, what you’re able to afford, and how you’re going to handle the monthly costs. Before you think about choosing a specific car just yet, however, it might be time to think about, precisely, how you’re going to get your hands on it in the first place. You can buy used, buy new, or lease, but what are the real differences between those options?
Buying a used car
One of the immediate advantages of buying a used car is that you’re likely to be paying significantly less for it. Deprecation starts to affect cars as soon as they’re driven out of the dealership so even if a car is technically a day old under a previous owner, they will never be able to sell it for full price. Of course, the lower in price that you go relative to the car’s initial value, the more potential problems start to pop up. You need to be careful and thorough when test driving and inspecting cars, especially when you’re buying off the private market. There is always that risk of buying a lemon. What’s more, the resale value of a used car can be a little harder to maintain.
Buying a new car
If you want to own a car at its best possible condition, then you’re going to want to buy new. New cars for sale come with no depreciation, meaning you get them at their most valuable. There’s also significantly less chance of having issues with it when compared to a used car. However, buying new is always going to mean spending more. That’s not to say there aren’t financial advantages, however. They will have less ongoing car tax and you’re not as likely to need to start paying for repairs quite as soon. Otherwise, the best way to start mitigating the additional cost is to know precisely what you want and know how to negotiate with dealers effectively.
Leasing a car
Leasing has become a lot more popular lately, due to the fact that it makes cars more immediately accessible. When you lease a car, you’re not committing to owning it, but rather renting it for an extended period of time. The leasing fee covers things like maintenance costs, repair, as well as depreciation, and it is certainly less expensive than buying a car, which allows people to drive better cars than they might otherwise be able to afford. A lot of people are leasing luxury cars. However, if you do go up-market with your choices, you could effectively be paying what it would usually take to pay off a car loan, but without the benefits of ownership at the end.
The practicality of each choice is going to depend on your own circumstances, such as what kind of car you want and what you want to pay for it. Take some time and make your own decision on which is right for you.
