There is no perfect scenario when you are in the market for a car. You have a lot of choices ranging from buying brand new, leasing, and buying one used. Since many people lease to save on upfront costs, it makes sense to do a head-to-head comparison between leasing and buying used. People often buy used to save money so this comparison can come in handy since it isn’t cut and dried.
Both scenarios have their pros and cons so it takes understanding the differences to find out which one is going to be the right move for you. In this article, we will go over the factors that go into making the right decision.
Buying used
The main advantage to buying a used car is the cost. It costs less to buy one and some of the ongoing costs are going to be lower. At least for a while. If the car you are looking at is not more than three years old, you will have what amounts to a used car. Assuming the previous owner was responsible and took care of it, you will have much the same experience as when it first left the lot.
The one problem is that after a set number of miles things can start going wrong. You may end up paying more in the long run if the car is expensive to fix and needs frequent repairs. Buying the right extended warranty like Endurance is a good way to protect yourself if you buy a newer used car, however. Look at some Endurance warranty reviews before buying so you can understand if this is going to fit your needs.
Insurance generally costs less for a used car than a new one. And if you decide to not finance it then you aren’t forced into buying the policy that the loan company requires before financing you. These policies often have a lot of coverage that you really don’t need. So, you end up saving on two fronts when it comes to insurance.
Leasing a car
There is a short-term benefit when it comes to the cost when leasing a car. You end up putting less money down to get into the car so it can even cost less money than financing a used car. When you need to get a new car but don’t have so much money to put down this can be a life saver.
It also usually costs less per month to lease a car than to make loan payments on a used car in some cases. If the car is less than three years old when financed, it can still cost quite a bit per month.
The other big benefit is that you will have a new car that is under warranty and all repairs will be done by the dealer. Some will even include routine maintenance like oil changes. This helps you save even more money.
