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    A New Car, A Used Car or A Leased Car? Choose The Right Car for You

    You have to consider a lot of things if you need a vehicle for private use. Among them is the best car suitable for your budget. New cars are expensive but guaranteed to be in tip-top shape. As for used cars, things become more complicated. The odds that you will be lucky to pick a good one is as high as getting a bad one. A leased car is appropriate if you only need a car in the short term. But beyond a certain period, the cost becomes exorbitant. 

    Do your research well so you don’t end up with the wrong car. Start by looking up their VINs to get a vehicle history report. Review and compare vehicle records. If the details on a car were inconsistent, that’s the sign that you should look for another car. Whether it comes from a free service, like VinCheck.info, or a paid one, like Carfax, any car report will certainly help you make an informed decision.


    Why should I buy a new car?

    A buyer may never run out of options. Getting a car with the qualities you are looking for is easy. Your choice is not limited to the dealership’s garage. A dealer may ask for a swap with another dealer. They may also order from a factory to match the customer’s preference. 

    A recently made vehicle is always reliable. It is designed using state-of-the-art technology and is expected to deliver cutting-edge performance. Wear and tear have not yet come into place. A brand new car is always in its peak condition. It may take a long time before the car starts acting up. So, you may safely set aside any worries for now. 

    It satisfies the customer’s expectation most of the time. Doing a background check on a new car is lighter compared to a used car. However, a VIN check is necessary to get a car report on defects. 

    There is always a warranty. The buyer may benefit from a warranty that covers the first 36,000 miles or three years of ownership. A free repair is offered, provided the necessary conditions of the warranty are met. Furthermore, lemon law protects consumers from defective brand new cars. 

    Easier Financing. The collateral can be assessed easily due to a lack of historical records. This speeds up the process of financing a car. 

    Depreciation may favor you. Not all cars depreciate at the same rate. Every car brand responds to market forces differently. But if the incentives add up to depreciation, the new car’s price may resemble the price of used cars. 

    You may gain unexpected incentives. In their rush to phase out car brands with outdated features or struggling sales, automakers may offer additional incentives, such as cash rebates, to buyers.

    Paperwork is more convenient. New cars become available to the public through dealerships. And they employ a staff that handles a buyer’s documentation. Just sign some papers and your car’s title and registration will be under your name.

    Buyers can smell the exclusive ‘new car’ scent. The smell gives you an assurance that you are the first owner. Definitely not a scent to ruin your mood when you take it to the road. 

    BUT…

    The greatest depreciation arrives in the early years. As the first car owner, you take the biggest hit on depreciation. The moment you drive the car out of a dealership, you have already lost over 10% of its market value. About a third may be gone in the first year. Within three years’ time, only half of the car’s value remains. 

    Your budget may not favor you. Buying a new unit is not for someone who barely makes ends meet. Its average price is usually twice the amount of its used counterpart. And if you factor in the price of repair, there might be barely any cash left for you to keep.

    Negotiating for a good deal is hard. New cars are sold exclusively by licensed dealers. They let their trained salesmen do the talking to get the most out of a deal. Meaning to say, it is gonna be tough to secure a favorable contract for the car.

    Mandatory add-ons are pricier. The costs of sales tax and insurance premium correspond to the prices of new cars. Provisions which may be left out on used cars, like collision coverage, are compulsory for new cars. 

    Respiratory hazards may endanger you and others. There are dangerous substances that occupants may inhale inside the car. The plastic cover may still harbor airborne particles from the factory. Airing off the vehicle may remove these hazards. 

    Why should I choose a used car?

    Cheap and reliable. You can get an excellent used vehicle for 50% the price of recently released units. And you may sell the car closer to its purchase price than what is possible with new cars. 

    Financing may save you money. The basic rule of thumb in vehicle financing is, “the better the condition of the car is, the better the provisions of the loan will be.” Some entities, such as credit unions, offer a good loan for a used car with an excellent brand. Combine the loan with low depreciation rate and you may save some cash to spend elsewhere. 

    Fees and charges may be less costly. A lot of factors may play a part here, but the cost of insurance for used cars is generally cheaper than brand new cars. With used cars, you have an option to discard some features of an insurance premium, such as the coverage on collision. If that is not enough, a used car’s worth may go down with DMV-related fees like registration renewal. 

    It is designed to last for long. The most recent used vehicles have better resistance against wear and tear. They are not as prone to engine breakdowns as in the past. Plus, routine maintenance has more intervals in-between. It may even have better specs than some of the latest cars.

    It raises your social standing. For some people, the brand’s logo and history are enough. Other details are inconsequential. If prestige is all that matters to you, consider buying a used luxury car.

    It may give you peace of mind. If a tiny scratch on a smooth surface gives you anxiety, then, perhaps, the solution is to buy a unit with existing marks. Nothing to be anxious if it is already there, right?

    BUT…

    Buying a used car is a gamble. Used cars are a mixed bag of good and bad stuff. On the one hand, it is possible to get an affordable, quality car. On the other hand, you may inherit a constant source of headache that may siphon off your savings.

    You are likely to encounter a scammer. Used cars are not exclusively sold by dealers. You may meet private sellers too while searching for prospective cars. Beware of scammers that you may come across. Ask others what they know about a seller before setting an appointment. 

    To avoid frauds, each prospective car must be thoroughly researched. Reading what performance review sites have to say is not enough. You also need to check the VIN code to understand a specific vehicle history. For issues that were not recorded, a mechanical inspection may help find them. 

    Choices are limited. The used car market is no ordinary market. The factory specs are not the only items on your checklist; you must take into account the vehicle’s history and condition as well. As a buyer, you should also find the ideal balance between quality and preference. And if you run out of choices, you may have to sacrifice your preference for what is available. 

    Riskier purchase means pricier financing. Financing a used vehicle is risky because of hidden vehicle issues, which may be aggravated by the customer’s low credit score. A financier may charge more as protection from unexpected costs.

    Not all units have warranties. While some cars in the secondhand market have active warranties, the older ones may no longer be covered when they were posted for sale. 

    No one celebrates buying a used car. For obvious reason, it is not considered a prestigious purchase by many. Buying a used car may not help promote your social standing. 

    Used cars are not favored by dealerships. In most cases, automakers and their affiliated dealers are more eager to sell their brand new models than older units. As a result, used car deals are few and are not as favorable as their newer counterparts. 

    Why should I lease a car instead of buying one?

    It gives you lower-than-usual-monthly bills. Pay for depreciation and other charges, but not the purchase price.

    It is easier to dispose of. Get rid of the car by waiting for the expiration of the lease contract. 

    A warranty is almost always guaranteed. A typical lease term is short, so chances are you are covered for the entire period. 

    Some lease agreements cover maintenance cost. This saves you the hassle of finding shops and mechanics in cases of car troubles and reduces your maintenance cost to almost zero. 

    Sales tax may be cheaper. The rule for sales tax varies by state. But if you are lucky, the tax may only cover the monthly expenses, without including the car’s market value. 

    BUT…

    Payment does not end with ownership, as expected in every lease agreement. 

    Discontinuing the lease may cost you more. If you fail to comply with the contract until the end, the lessor may punish you with onerous charges.

    Fewer places to visit. You can only reach a certain mileage, which, if exceeded, will incur penalties. A prohibition may also apply to certain places. 

    Arbitrary charges. The lessor’s decision on what to charge may not be to your liking. Plus, the insurance coverage they demand may not be reasonable for you. 

    Keeping the original appearance may be required. If you signed a contract that compels you to return the car as is, the augmentations must be removed after the contract ended. Even a minor dent may call for an overhaul or replacement.  

    You may not qualify for a lease. Leasing companies are strict in scanning an applicant’s qualifications, especially credit scores. If you were someone who consistently fails to pay on time, you may barely find any leasing company that accepts you.

    Other things to consider

    Keep in mind the vehicle type and the place you are located. There is the right type for the right setting. If your daily transit involves city streets, a city-car may give you the fuel-saving option you need. Likewise, an SUV is designed to offer smooth driving on uneven terrain. 

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