Weighing up the purchase options for your next car

With the automobile market becoming increasingly competitive, there are a lot of tempting deals out there for a family in the market for a new vehicle. Low monthly payments, 0% APR and scores of other shiny bells and whistles are jangled about to distract you from your senses. Whether you opt to lease or purchase, there is always a degree of financial risk, so it is crucial to weigh up some pros and cons before making a final decision.

Leasing a new car

For those who don’t want to commit to an aging model year after year, leasing is an easy choice. On leases, the initial down payment can be cheaper than buying new and the set monthly costs can be less prohibitive than those of a car loan. Auto repairs are often factored into the deal, too. However, families who might struggle to commit financially to a lease term should be wary. Monthly costs factor in depreciation, so there may be restrictions on mileage, which means leasing will not be practical for owners with lengthy commutes, or those who use their vehicle for business.

Buying a new car

If you’re lucky enough to have the capital to buy a new car outright, it’s unlikely you’ll be wasting your time with this article! Most of us, however, will have to take on some sort of finance deal if we want a new model. The main advantage of buying a car over leasing is that at a certain point of ownership (usually around the five year mark), you begin to build equity, rather than losing it. Insurance rates for buying a new car are slightly cheaper than a lease car, and if you don’t need to refresh your spec every three years, this could be your best new car option.

Buying a (reliable) used car

Buying a used car from a reputable dealership can be a good compromise for families on a tight budget, or those who don’t want a future hampered by unmanageable debts. For peace of mind, choose a car with a one or two year warranty, and your insurance premiums, depending on the model, will be more favorable. When you walk into the dealership, have an arsenal of haggling tools to hand; your best will be immediate payment. Keep a stock of objections in mind to keep the salesman on his toes.

Car deals are variable, circumstances change, and buying a car, on any terms, is a risky undertaking. The best you can do is equip yourself with the right information, and always keep your personal circumstances in mind. For more information on the pros and cons of buying vs leasing your next car, check out this nifty guide.

April is an award-winning writer and blogger. Her work has been published in over ten countries and four languages. From books to newspapers, to print/online magazines and everything in between, you can find her work. For more on April, Visit AprilMcCormick.com