If you’re looking for a new car, you need to think about not only which car you’re going to get, but also how you’re going to buy it. In many cases, this might involve ensuring your credit is in the right place and that you have enough cash to put down on it. However, these circumstances can change depending on whether you’re buying it or leasing it, as well as how you’re paying for it. Here, we take a look at your options, some of the pros and cons, and when which option might work for you.
There are plenty of immediate advantages that come with buying a brand-new car. For one, there’s no depreciation on it. This changes as soon as you take it out of the dealership, but it has the most value it will ever have as soon as you buy it. Furthermore, while there are concerns that used cars can come with some wear and tear, there are no such worries with a new car. They might have their own problems but those are born from the manufacturer, not from use and age. Of course, not everyone can easily buy a new car due to the price and given how much car prices can drop as soon as they’re bought, you might wonder if it’s really a wise option.
When looking at the advantages and disadvantages of buying used, you simply have to flip that advantages and disadvantages of buying new. One big plus is that it’s significantly cheaper than buying brand new. You’re also likely to have to pay less car tax on it. However, when you’re buying used from the average dealership or on the open market, you have to be careful that you’re not being sold a car that isn’t going to serve you well. You don’t have to be concerned in any way about buying a used car, but it will pay to be vigilant. Take it for a test drive, have a mechanic take a look over it, and be sure to do your research on its history to make sure it’s not stolen or it hasn’t been written off.
Buying used doesn’t always mean buying on the open market, nor from dealers that specifically buy and flip vehicles to sell them at a profit. There are plenty of dealerships that sell both new and used cars and, if they are approved by a car manufacturer, then they are not likely to be trying to sell any lemons. Instead, they may be part of an approved used scheme. Effectively, this means that any used car that has an approved used certificate will have undergone a degree of essential maintenance, improvement, and testing to make sure that you’re getting your money’s worth. It’s a little more expensive than going with straight-up used, but many drivers consider it worth it.
Who said that you have to buy at all? An option that has been growing significantly more popular as the prices of cars rise, is a lease agreement. With a lease, you don’t end up owning the car, but rather rent it for a significant period of time. You don’t pay off a loan but are charged a leasing fee. These fees usually include maintenance costs, depreciation, and the like. Car leasing special offers can help you find which cars are the most cost effective to drive at the moment, too. Leasing a car can be cheaper than buying and you can end up affording a much higher quality car than if you looked to buy. The only drawback is that you don’t end up with an asset at the end.
There are a lot of ways to pay for a car when you buy it, but one of the most distinct and thus noteworthy, is hire purchase. This is a form of financing that can help you reduce the costs of a loan. After you pay the initial instalment, the loan is secured against the car. There’s no large final payment to get ownership over the car, unlike other car loans, either. With this kind of instalment plan, you don’t have to commit to buying a car before you have the chance to drive it, either, as you can close the agreement at any point.
Depending on your financial situation and plans for the vehicle, each of the options above can work in different circumstances. However, for most people, it still remains that buying used is often going to be the best deal available.