A Review of Pro’s and Con’s of Buying a Car
Anytime you make a large purchase, there is a risk. One big purchase that many are fortunate to decide on is a car. Being faced with this decision can lead to some uncertainty or even anxiety. Remember to determine why you are buying this car so you have clarity when making your choice. Take a moment to reflect on gratitude that you are in a position to be able to afford your car. Taking a few steps prior to making your decision can get you focused and ready to make your choice.
This article will review three options, leasing, buying used and buying new. I’ll break down the pros and cons of each. It’s up to you to decide which pros and cons weigh more to you personally. Learning about each will allow you to feel more confident in making your decision.
Buying a Car: New
Typically the car is financed through either a 3, 5 or even 6 year plan.
Pro
-You have a brand new car to start with, hello new car smell.
– Besides that amazing scent, new cars most times come with less repair requirements. I am not a fan of repair shops, so not having to frequently visit one is a big perk to me.
-Your new car will offer the latest and greatest safety technology.
-After your finance period, NO CAR PAYMENT
Con
-You have to cover maintenance costs as it gets older and requires them.
-Higher cost, requiring a larger financial commitment. Also cars typically depreciate after you drive off the lot. Unless you are in the middle of a worldwide pandemic, and supply is limited, pushing your car into high demand.
Buying a Car: Lease
Most leases are for a three year time frame. You do not own the car after that time.
Pro
-Your monthly payments through leasing a car are cheaper than monthly payments from purchasing a brand new vehicle to own.
-You get a brand new car to start with. Hello again, new car smell. If you continue with the leasing route, you get a new car every 3 years. That fresh new car smell does not last the whole time, but in 3 years, you get to smell it again!
-Some leases will cover maintenance costs such as oil changes, tire rotation and other safety checks as indicated my the manufacturer to upkeep your vehicle.
-New cars offer the latest and greatest safety technology.
Con
-You have constraints on your mileage. The normal amount is 12,000-15,000 miles a year. If you have a far daily commute, this would not be the best option. If you go past that indicated mile mark there are fees applied.
-You will always have a car payment. After your three year lease commitment, you are faced with getting another lease with payments or purchasing a car. When continuing with leasing, you continue a car payment.
-An additional warranty is needed to cover Wear & Tear. Without that, you are responsible for that cost at the end of the lease when you turn in your vehicle
Buying a Car: Used
It is important to get the history on the car to make sure you are getting a quality automobile and at the right price.
Pro
-Your car payment will be less than purchasing a brand new car. You have the opportunity to own a car, for a lower financial cost.
-After your finance period, NO CAR PAYMENT. You just eliminated a monthly bill!
Con
-You need to cover maintenance costs, and this could begin right away depending on the car.
-Sometimes these costs can be more than anticipated and require large amounts of money out of pocket.
-You may receive inaccurate or no history and receive a car with more issues than anticipated.
The purchase of your vehicle is your personal choice. Evaluate the risks of each and choose the route that best suits you. It will not be the same for everyone. Certain elements are more important to you, than others. Your financial state is not the same as others. Only you can make this choice. Make it confidently. Allow yourself to enjoy the moment and your new car.
