Motorists have a few options to consider when the time comes for a new car. You could buy a new or used car either by paying outright or arranging a finance deal and there is also leasing to consider. This can make it a difficult decision, especially when there are pros and cons to all of the options. Keep reading for all the information that you need to make the right decision.
What is Leasing?
Leasing is an option that is becoming increasingly popular and it is easy to see why. Essentially, this is a long term rental option where you pay a fixed amount over a pre-agreed term – usually 2 or 3 years. At the end of the lease, you can then return the keys and take out a lease on a newer model.
Pros & Cons
Leasing is a good option for those that like the idea of driving a new car every few years and usually works out cheaper than a finance deal. Additionally, you will find that this is a smart way to avoid depreciation as you do not have to worry about selling the car and losing money.
In terms of drawbacks, leasing is not for everyone because you never technically own the vehicle. In addition to this, you will find that there are often limitations in place such as not being able to customise the vehicle and annual mileage limits.
Buying new has obvious benefits in that you are the first owner, you will benefit from all the latest tech and features, you get full warranty protection and the vehicle will be in its best condition with no miles on the clock.
While buying new can be tempting, you will find that it is not the best option financially. Not only are new cars hugely expensive, but you will also find that depreciation is a major issue with cars losing around a third of their value after just one year.
Many motorists will find that buying used cars is the best option. This is because it is much cheaper than buying new, which also means that you can get more for your money. You will also sidestep the biggest depreciation hit and the used car market is enormous, so you should be able to find a car that ticks all the boxes and is within your budget.
In terms of drawbacks, you will be buying cars that have previous owners and miles on the clock so the condition may not be the best. This is why it is important to only buy from a reliable dealership and to thoroughly examine the vehicle and take it for a test drive.
This post should help you to identify what the best option is for you and know what to expect with your decision.