Cost vs. Value: Buying New or Used Cars

Budget constraints definitely come into play when you set out to purchase a new (or new to you) vehicle. Beyond the cost of the vehicle as a whole, buyers need to think about how much of a down payment they can afford and how much they can set aside for monthly payments. While buying a brand new vehicle isn't in the cards for everyone, it's important to be able to get a reliable vehicle you want to drive and own at a price you can afford, but how?

When you're considering a new to you vehicle, you can choose between buying new, buying used, and leasing. While each of these options has certain benefits and drawbacks, it's really about finding the option that works for you. Today, I'll be breaking down two vehicle purchasing options: buying used vs. leasing.

Buying Used Vs. Leasing

It's well known that lease agreements oftentimes result in a lower monthly payment than when you purchase a new vehicle but did you know that leasing can also be a less expensive option than purchasing used?

The Benefits of Leasing

When you enter a lease agreement, there is little or no down payment required. In fact, many dealerships run purchasing incentives where you can drive off with no dollars down. Also, entering into a new car lease means your vehicle will remain under manufacturer warranty throughout your entire lease term.

Another added benefit of leasing is that you are not burdened by the responsibility of reselling the vehicle. You simply return it to the dealership at the end of your lease term in most cases.

The Benefits of Buying Used

Buying a used vehicle also has its fair share of benefits. Once you've paid for the vehicle in full, it becomes an asset you own. That ownership can be leveraged when you do decide to buy again, allowing you to subtract its value from your next vehicle purchase. Additionally, making regular, on-time payments is a great opportunity to improve your credit score. Beyond that, buying used means you can make whatever modifications and upgrades to the vehicle you'd like, whether that's upgrading the stereo, installing remote start, or anything else you can think of.

Which Option is Your Best Bet?

Like I mentioned above, buying used and leasing both have benefits. What's important then, is deciding which benefits work best with how you like to purchase, drive, maintain, and own a vehicle. The next time you go to purchase a vehicle, be sure to consider all of your options. Be prepared to ask about all of your purchasing options at the dealership or direct seller you’re intending to buy from.

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