Leasing a New Car vs Buying New vs Buying Used

Driving a car is a real pleasure, and obtaining a driver’s license often becomes a real holiday for the lucky man who gets it at last. However, this is not a happy ending yet! The document does not matter if it is not about the car you drive. So, you get behind the wheel… and it’s up to us to congratulate you as your life changes dramatically.

If there are motorists who refuse to drive voluntarily, we’re sure they are few and far between. In fact, now most of your thoughts will be about cars, cars… and cars, of course! Moreover, the very first message will sound like this: where to get it?

It doesn’t matter if it is your first car or you have already lost count of vehicles that have traveled thousands of miles with you, you usually have three options. So, you can just visit a dealership, buy a new car and drop the subject for at least a few years until you want something else. You can turn to the experience of buying a used car to stay within the budget and get the model you have always dreamed of, even if it is a couple of years older. And finally, offers from auto brokers will let you gain experience of leasing and understand whether it is what you really need.

So, what is better – buying a new vehicle, purchasing a used car, or leasing a model you dream of? As you probably understand, there is no general answer here and we are sure it will never be. And yet, let’s try to explore the pros and cons of all three options to help you choose the right direction.

How to Get a Car Today – Some Market Situation Analysis

Until a few years ago, motorists could afford to choose how to get a car – and even small mistakes were quite forgivable. However, an incredible situation on the market today forces car owners to calculate every step and follow the news steadily.

For example, GrandPrixMotors discovered an amazing paradox by comparing prices for new cars from dealers with offers for used cars. The fact is that models aged a year or older may cost more than spick-and-span cars! So far, no one has been able to explain this phenomenon, but it confuses the beginners who are only planning to buy their first vehicle.

The second point is the car price spike associated with both the global financial crisis and the lack of electronic components. The rise is observed in both the low-end and executive cars segment and so far, it is a steady trend that is not going to change.

Thus, the current situation forces potential and current car owners to make decisions quickly when it comes to buying the first vehicle or changing the car. Nevertheless, haste is not necessary here, and a reasonable analysis is something that can help you. Now, let’s not beat around the bush and move on to ways of getting your dream car.

Buying a New Car – What Are the Benefits

The purchase mechanism is very simple in this case. You choose the make and model you are interested in, stop by a dealership nearby – and voilà! Now, you are the owner of a new and modern car with all sophisticated and advanced options.

At the same time, this story can be short only when buying a car for cash. Your ability to save up on a new vehicle is admirable, but what should do those whose coins never allow them to make a purchase without looking back? The following options are provided for these situations:

• Loan. This is the most common way to find funds for the car you need. Waiting for its approval can be very exciting (a good credit matters here as well, remember?), and a clear schedule requires paying out in time.
• Hire Purchase. In this case, you own the vehicle and pay back with even payments. Yeah, it’s a lot of pressure, but you close all your debts in a short time.
• Personal Contract Purchase (PCP). This is a rather complicated type of finance that implies the payments coming from a deposit. However, if you understand the process, you will realize what benefits can be derived from it.

Pros of a New Car Purchase

• It is absolutely new. Each new car has an up-to-date design and many interesting options. Besides, it’s never been used before, and for many, it’s a considerable benefit.
• It is absolutely yours! You can drive it as far as you want. You can make any changes to its interior and appearance. In short, it is your property, and it is at your complete disposal, with all that follows.
• You can sell your car at any time. However, it usually applies to those who have already paid the loan back.
• It might cost you less! If you prefer to buy a vehicle for the longer term, you will eventually win money even if you have to take a loan.

Cons of a New Car Purchase

• All repair and depreciation costs are borne by you.
• Selling the car is just your headache.
• Your financial arrangement may be more stringent and lengthier than you anticipated.

Purchasing a Used Car – All the Pros and Cons

A used car is the way out for those whose wishes do not meet the possibilities. Yes, not everyone can afford a new vehicle, so there is nothing wrong with buying a brand and model of one or three years old (or even older).

Moreover, many motorists are faced with a choice between a new car of a lower class and a used model of a higher segment and it results in picking the second variant. Well, we’re sure that stylish design, comfort, and reliability are worth it.

Pros of a Used Car Purchase

• You buy a model that is well studied and has relevant reviews.
• You can find very decent offers at favorable prices.
• You can trade on purchase as much as you want!
• This is your property as well, and you can change or sell your car if you did not like it for some reason.

Cons of a New Car Purchase

• The older the car is, the more debugging and repair it requires.
• The risk of encountering an unscrupulous seller who will offer you a vehicle with serious faults is very high.
• Obtaining a loan for a used car can be difficult.

Leasing a Car – Benefits and Pitfalls

So, buying a car is not in your plans, and the need for driving is very high. Well, welcome to the amazing world of leasing, where you get the pure pleasure of a user without being burdened with unnecessary worries!

To lease a car, you contact a dealer or an auto broker, choose the make and model and clarify the terms of the deal. The lessor offers you a certain price and monthly payment schedule considering manufacturer’s suggested retail price (MSRP), supposed lease-end residual value, and depreciation. After that, all the other terms are settled and the deal is made.

After that, you get the car at your disposal, drive it for the whole lease period, and pay the settled fees every month. When the contract is over, you have a few ways to act. Some lessees prefer to extend the deal or buy the car out while the others just terminate the agreement to lease a new vehicle.

Pros of a Car Lease

• The payments, including the down sum, are usually lower than are usually taken when you sign a loan.
• Your car is under the manufacturer’s warranty, so you don’t need to think of costly maintenance.
• A lessee is freed from any concerns, including the car depreciation or the necessity to sell a car.
• You can lease a new car every four years and experience up-to-date models more often than many car owners.

Cons of a Car Lease

• The leased car is not yours. When the deal is over, you’re left with nothing, though your money is spent.
• You are limited in a number of aspects, including mileage. If you drive more, some fines may follow.
• You will have to pay if you want to part with the car before the lease period ends.
• Multi-year leasing may be less profitable than a one-time purchase of your own car.

To Sum It Up

As you can see, every way to get a car has its advantages and drawbacks, and there is no one-stop recipe. Consider your vision, lifestyle, and financial position, consult the experts, and make up a plan. Anyway, people keep buying new cars, go on purchasing used cars, and stay with lease brokers for years – so, one of these ways is surely yours!