It is important to make a wise decision while planning to avail the car. The important part of the process is to know what you want. New, used or leased. What will be its effect in the future? It is tough to have a definite answer that puts together all situations and all people.
If you are looking for the latest technology then buying a new car is the best option while if your goal is to use an expensive car at moderate monthly expenses, then leasing is the best route.
What are the Differences?
Leasing enables to avail new car at affordable rates, but at the lease end, you are left with nothing. If you need the new car on a budget, this may be a nice option, but you do not own even after paying for three years.
Buying a new car is pretty expensive and longest term option. But this investment is worth it. A new car is under warranty for the first few years, and you can drive it for as many years you want.
Buying a used car is a cheaper option; however, the car is not new on. Late model of the car gives you several years of driving before it should be replaced. According to experts, it is the best value for your dollar.
Leasing: Favorable Factors
- Leasing is usually for three years, and during this tenure, the vehicle is under warranty. You are free of repairs and maintenance if you lease a new car that has a free maintenance program.
- At the beginning of the lease the finance company sets up the price, and that is the current market price of the car at the lease end. So you can also buy the leased vehicle.
- You will be protected against unexpected depreciation if you lease a car. Some time due to a shift in the market the car value unexpectedly drops, but in this case, you will not be hurt.
- An attractive tax deduction is offered on a leased
- You can enjoy the latest technology and comfort by leasing a car.
Ownership: Favorable Factors
- You can save money every month as a repair and maintenance fund for the car.
- You can sell the car when required.
- There is a flexibility to modify the car according to your choice, and you need not worry about excess wear and tear. Also, you don’t have to bother about excess mileage penalties.
- As the car is a depreciating asset and if you drive it for many years its value diminishes. Financing a used car or new one makes sense only after full loan repayment.
Know your Choice
A used vehicle is the least expensive option for papers, but you need to repair the aging vehicle. But if you are bored of using the same car, then leasing is the better option. Make your calculations; consider different factors, and you will know the best choice.