The debate is always there for people who are looking to replace their vehicle. Do they get a new car or a used car? Should they make payments or should they lease? This is a good question to ask and the answer depends on the individual looking for a vehicle. There are a few different questions that one has to ask themselves in making that decision:
First, what financial shape is a person in? This is the first, and most important question to ask. Everyone fantasizes about buying a brand new BMW or Porsche, but the truth is that not everyone can actually afford one. So, the first thing that people need to consider is how much money they have in the bank.
No, this doesn’t mean that someone without any savings shouldn’t buy a car. It simply means that they need to look at their finances and know what they can afford per month for payments or a lease. That’s the first true indicator of what they should look at for in a purchase.
For people who have enough money to make the monthly payments for a new car, then it is an option. Just remember that just because a person can afford four hundred dollars a month in payments, doesn’t mean that they have to pay that. Saving a bit of money each month should be a consideration as well. A used car means lower payments per month and gives more flexibility to one’s budget.
If a budget reveals a more limited amount of money is going to be available at the end of each month, then one needs to consider a used car. A car’s value drops the moment it leaves the lot and there is thousands of dollars in savings from buying a car that is just one year old!
The option for a lease should be considered, depending on what a person believes to be the best option for them. A car carries responsibility, but that responsibility is somewhat lessened with a lease. Leases will usually cover maintenance and repairs, but it also reverts back to the dealership after about five years. That means that over the course of that term, most people will have paid about eighteen thousand dollars on their lease and walk away with nothing. That’s right, a used car would cost about that much!
Second is the consideration of what is most important to one’s self, aesthetically. A new car will look great and impress friends… for a while. The look and smell of a new car can influence people, but after a month that new car is old news! A used car is still a new car to a friend and it will still be a big deal, and without paying thousands of dollars more.
In the end, people who want a new car above all else will get it, no matter what, but used cars have a lot going for them and need to be seriously considered before making that decision: used or new?
