It is only normal for people to want to save money, and in terms of acquiring a new car, one of the most common questions is whether or not one should buy a new car or lease one. There are all kinds of experts out there who say one way or the other is "always" the right answer, but the problem is that their "right answers" fall on both sides of that fence.
The real answer is that it depends on you and what you want to accomplish, as well as your car habits. For car habits, we are referring to how often you get a new car. Do you get a new car once every couple of years, or only when the wheels fall off the previous one? If you always need to have a late model car and don't care that it really never gets paid off, then leasing is probably a better option for you.
How many miles do you typically drive over the course of a year? If you are a traveling salesman or a tech support person covering a large geographic area, meaning you put a lot of miles on your car, then leasing is almost certainly not your best option. Leasing programs are getting more flexible these days, allowing you to specify how many miles you will drive over the course of your lease, but if it works out to be much more than the standard 12,000 miles per year, you will probably find that the cost of leasing actually exceeds the cost of buying a new car.
Look at it like this. On a lease, the dealer needs to figure out what he can sell the car for at the end of your lease period, say two years. At 12k miles per year, a two year old car with only 24k miles on it will still demand a decent price if it's in good shape, and allow the dealer to make a reasonable profit on the sale. But that same two year old car with 50k miles on it is going to sell for considerably less because of the much higher mileage, and your lease payments will reflect the fact that the value of that vehicle is going to be less, and YOU will be paying the difference in your lease payments.
With a lease, you never build up any equity in the car. It is like having a permanent car payment. Yes, at the end of the lease you can buy the car, but at that point you could probably get a better deal on a better used car, so that is an option that very few people take advantage of. On a lease, you still pay for insurance, tires, oil changes, and all the other stuff that you would pay for if you owned the car. In fact, you will always need to carry full insurance coverage on the car, whereas you can drop the expensive collision insurance on a car that you own after you have paid it off.
On the other hand, if you are using the car for business purposes, a lease will provide you with a bigger tax write-off than a purchase, generally speaking. Also with leasing, your monthly payment will typically be less, depending of course on the model of car you choose.
If your credit rating is less than stellar, you may wish to consider purchasing instead. While you can find car loan programs for people with average credit and even bad credit, it is much more difficult to find a good lease program for people with less than good credit because the risk to the dealer and manufacturer is greater.
You need to do your homework and determine which is the best way to go based on your driving habits and car ownership habits. There is no right answer that fits all people, so make the informed decision that is right for you.
These days, however, people have greater chances of buying a car because there are practically more options in transactions.
If you are aiming to purchase a car, it would be wise if you would take into consideration several factors. Initially, you need to decide whether you want to buy a new or a used car. If you have enough money to spend, of course, buying a new car is the most advisable and logical thing to do.
New cars are always on top quality and are guaranteed to deliver good and reliable performances. On the other hand, if your budget is quite limited, you can opt to purchase a second-hand car, which are available at car auctions or through used car dealers and brokers.
When buying such refurbished and reconditioned cars, it is imperative that you look at several considerations, particularly, the number of the car's previous owners, accident and mechanical history and maintenance requirements.
When purchasing a new car, it would surely be helpful if you would take note of the following advices and recommendations. These are considered the basic and important things and activities you should do before car purchase.
1. If you are aiming to find and secure the best and most reasonable deals when purchasing a car, it would be advisable if you would make the acquisition on the period from July to October and on the second half of December.
It is a know fact that cars are basically less costly on these periods. Annually, the periods also coincide with the usual periods car dealers usually launch and implement significant car purchase discounts. Discounts of a few percent surely would mean a lot of savings.
2. Do a comparison shop first. There are numerous used car dealers in the community and all of them are aiming to cut the throat of each other.
That is why you can be sure there is intense competition, which usually comes in the form of contests to lure more customers by lowering prices. Of course, dealers offering the best and most competitive prices win, and you should do business with them.
3. Always remember that cars that would be ordered from a car plant or facility must not cost more when compared to the prices of cars on the lot or the showroom. Many car buyers are fooled when dealers charge extra costs for cars that need to be ordered from plants.
Likewise, you should be wary about cars that need to be sourced or located by the dealer from another dealership. Usually, used car dealers implement additional, yet, unnecessary fees for such service.
4. It is illegal for car dealers to sell cars that lack price invoice sticker or MSRP. The price tags in the showroom should always be the actual price you would need to pay if you are making the purchase. No more, no less.
5. Lastly, it would be wise if you would do your own research of the car model or brand you are purchasing. Carmakers and marketers hire the best advertisers. So at times, do not fully believe ads for they have been developed and produced to awe and lure buyers.
Both Jon A & Alex Baumm are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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