You have three options when it comes to buying a vehicle; you can buy a new one, go for a used car, or get one on lease. If you have a very limited budget, the choice will be easier. But if you have some space to play, you might be torn between buying a new regular vehicle, buying a used luxury one, or going for a lease. No matter what your situation is, however, it’s always better to understand the benefits and disadvantages of all options so you can be a savvier shopper. Let’s take a look at them all in a bit more detail so you can choose the best one for you.
The Pros and Cons of Leasing
Leasing a car is a good option if you have a limited budget and you want your payments to have a minimal impact on your finances. Leasing will allow you to drive a better car than you could afford with financing as well. You’ll never build equity on a leased vehicle, however. The vehicle is never yours and the leasing company can always take it back if you don’t pay or violate certain terms. This also means that you won’t get any money for the vehicle at the end, but you won’t have to worry about selling it either.
The Pros and Cons of Buying Used
Buying a used vehicle is another good option for the budget-conscious or if you’re a new driver looking for a first vehicle. Buy a good two to three-year-old used vehicle and you’ll get something that is cheaper, will last you for a good while, and still be under warranty. If you are really strapped for cash, then buying used could be your only option, especially if you don’t think you’ll qualify for financing or a lease.
You have to be careful with the vehicle you pick, however. The goal is to pick a car that will be cheap but still reliable. You also have to pick a brand and model that has cheap and plentiful aftermarket parts. If we were to recommend one manufacturer here, it would be Ford. You can find a few good two- to three-year-old used Ford cars Dukinfield starting at as low as £9,645 and they will last you forever. We suggest you look at some compact models like the Fiesta or the Focus if you’re really strapped for cash and space is not that much of an issue.
The Pros and Cons of Buying New
Most people would advise against buying a new vehicle, and we tend to agree for most cases. Buying a new car only makes sense if you’re a millionaire with money to spend or you absolutely can’t stomach the idea of someone else having driven your car before you. In all other cases, buying new is not recommended.
There is no point in buying a brand-new car if it’s going to lose almost a third of its value the minute it leaves the lot. Buying a new car doesn’t even guarantee that you’ll get new features as some manufacturers keep their vehicles exactly the same for a few years. Waiting one or two years before buying a vehicle would allow you to save tons of money, get the latest design and features, and still have some of that new car feel. Also, the car will still be under warranty.
Before you decide which route you’re going to take, look at all options in detail and don’t hesitate to ask people around you for a second opinion. Do not rush into a decision and don’t dismiss any of these options out of prejudice.