Automobile Personal Finance

Buying Or Leasing A New Car

When choosing your next car, it can be difficult to make decisions on a number of levels. What make and model do you want? Should you go directly to the dealer for a brand-new car? What about a second-hand car? Or, is the best option to lease a car? All of these questions then have numerous follow-up questions you may then ask yourself.

If you do not know the answers to any of these questions, we have gathered some information below regarding considerations you could make to decide on the answer.

Leasing vs. Buying a New Car

Make and Model

When choosing the make and model of the car you are going to buy, there can be a number of factors that you might have to consider before making your choice. You will need to ensure that the car you are buying is big enough for your needs, with enough trunk space. You will also need to consider the accessibility needs of anyone who will be regularly using the vehicle. This could include ensuring that the car is low or high enough for users of the vehicle to get into and out of.

You will also need to consider the fuel type of the vehicles that you are considering. With fuel prices increasing, fuel economy is also an important part of your decision considerations. The make and model of the car you buy can also affect the cost of the insurance, so it is worth checking which cars would be the most expensive and cheapest to insure before choosing the car.

It may be that you have a preferred make and model for your next vehicle, and the above considerations are unnecessary. If you do not and do not know where to start even with those considerations, we recommend that you go and visit some car lots to see some vehicles in person. This can be helpful in narrowing down your list of potential vehicles, as pictures and specifications viewed online are not always helpful in making the decision.

Brand-New Cars

Buying a brand-new car can be exciting, knowing that you are the only owner and you do not have to be concerned about the way the car has previously been driven. You will know that every check and service has been completed from when the car was purchased, and you will have the full manufacturer’s warranty in case of any issues with the vehicle.

Brand-new cars can, in some cases, be cheaper to insure, and you can experience cheaper running costs in comparison to older models of the same car. However, you should also consider the depreciation in value of a brand-new vehicle as soon as it is driven off the lot. This is the concern of a high number of car owners and a reason why some people choose not to purchase a brand-new vehicle.

Additionally, there has currently been an increase in the number of delays experienced by manufacturers building new cars due to a shortage of car parts currently being delivered. This is increasing the manufacturing time for new vehicles and, therefore, the wait time to receive a vehicle, with delivery dates being extended after purchase.

Second-Hand Cars

Second-hand cars can be preferable to many drivers due to the lower price tag attached to a second-hand car. Taking advantage of the depreciation in value of new cars, you can get very good deals for used cars that have been very rarely driven.

It is beneficial when looking at used cars to check the age and distance driven by the car when deciding which to buy. If you are looking at used cars that have been used by businesses as office cars or that have previously had an owner that only drove close to home, you can get a fantastic deal for your money.

We would always be wary of cars that have changed owners multiple times in a short period of time, as this could indicate an issue with the vehicle. Also, cars that are newer with a high distance driven are vehicles we would think very carefully about. The further and more often that a car has been driven, the more likely it is that there will need to be, or have been, repairs made. While incidental repairs are expected on used cars, significant repairs increase the likelihood of future problems with the vehicle.

We would also recommend that you always check the service history of the car you are looking to buy. Checking that all maintenance checks have been completed and all required services have been executed to keep the car in the best possible running condition.

Lease Cars

An increasingly popular option for many drivers is to purchase lease cars, and this is a very affordable way to drive a brand-new car. Lease cars remove the cost of repairs, services, and maintenance of the vehicle, as this is covered by the lease company. This can often make leasing a car cheaper than the cost of car finance to buy a car outright, with payments on a New Ford Ranger becoming more affordable with the right lease contract.

There are several types of lease contracts available, and you can choose the right fit for you. This can include leasing the vehicle from brand-new for a fixed period of time with a fixed monthly payment. At the end of this monthly term, you can have a lease that will mean you trade that car in for another brand-new car, and this does not have to be the same make and model as the previous car.

Alternatively, you can lease a car that, at the end of the fixed period, you pay a balloon payment which will mean you will own the car outright. This lease method can mean that your monthly payments are considerably less than the car finance that you borrow from the car dealership. Meaning that with the money you are saving monthly on the lease payments, you can save up toward the cost of the balloon payment. You will still have been the only owner of the car, but the monthly cost of purchasing that car could be more affordable.

You should always check the affordability of any financial plan that you take out to buy a vehicle, and finance or leasing a car will be subject to the relevant financial checks.

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About the author

Vidya Menon

Vidya is an online content developer for Justwebworld. She has a BA in English Language and Literature and an MA in Current Linguistics. She is a passionate reader, writer and researcher with a background in academic writing.