There are many factors to consider when purchasing a car. One of the main choices you will have to make is whether you want to buy a brand-new car, a used car, or lease a vehicle. Deciding can be hard but understanding the advantages and disadvantages to each option can make it a little easier. Today we will discuss purchase lease options
Buying a Brand-New Car
The obvious benefit of purchasing a car brand new is that it’s BRAND NEW! Who doesn’t love brand new things –this means that the car will come equipped with all of the newest technology and latest features. You’ll have all the bells and whistles that comes with a new car.
An even better benefit is that it’s the most economical choice in the long run –when you drive the car out of the parking lot, it will be the first time those wheels hit the road (besides test drives, obviously).
Ownership is a big deal as well. This car is yours and you can do whatever you want with it. Modify the speakers so the entire neighborhood can hear or paint it neon pink to stand out from the crowd if you want. Do whatever with the car–it’s yours!
With the good, there’s also bad. When you buy a brand-new car, it’s going to be expensive –expect a higher down-payment, monthly payment, sales tax and insurance costs. New cars do come with warranties but when that runs out, you’re going to have to foot the bill for repair costs. A new car’s value will also depreciate faster than a used car –if you don’t plan on trading the car in it doesn’t really affect you, but if you do, it will.
Buying a Used Car
Similar to buying a new car, one of the benefits of purchasing a used car is ownership. You own it, do what you want with it. Unlike buying a new car some of the costs will be less expensive. Taxes and Insurance will be less. Buying a used car will cost you less with payments, sales taxes and insurance costs.
You’ll also have the advantage of having more resources to analyze before you purchase. The vehicle will be out long enough for accurate consumer reports to be available.
The disadvantage is that you do not know the previous owner and how they treated the vehicle. Dealing with a used car, can also mean that you can expect damages sooner.
Leasing a Car
Leasing a car can be tricky because every contract will be different. You’ll be able to drive a better car for less money. If you really like cars and want to change every other year, this may be the option for you. This option tends to be less expensive in the short term –you’ll have less of a sales tax, and lower monthly payments, and lower down payment –or no down payment. Lower repair costs are a big benefit as well since you’ll be under the vehicle’s factory warranty.
A major disadvantage is that you do not own the car. You can’t modify it to your liking. Leasing often risks some heavy penalties –your mileage may be limited and if there’s any damage in the car, you may get penalized for that. In the long-term it will be more expensive. You can try to buy the car at the end of the term but often you’ll end up paying more than what it’s worth.
In short, it’s up to which trade-offs you would like to make while purchasing a car. If you’re looking for long term worth, purchasing a new or used car may be the better option. If you want more car for less money for a short period of time then leasing may be the way to go. It’s all up to you to decide on the preferences that best fit your lifestyle.
Discuss your options at John Amato Mitsubishi Milwaukee