Car leasing vs car buying is an increasingly popular way to get a new auto.
- A down payment may not be required.
- Monthly payments are generally lower.
- Enjoy a new car more often.
- Conveniently turn in the auto at the end of the lease than negotiating a trade-in value or sale.
Disadvantages:
- You get no trade-in or resale value at the end of the lease.
- Steep charges to break the lease early.
- May be charged for excess mileage or excessive wear and tear.
- If you choose to purchase the auto at the end of the lease, you may end up paying more than if you purchased the car in the first place.
- You may be required to carry higher liability limits and for newer vehicles, you are usually required to insure your car for comprehensive and collision with certain deductibles.
Second Hand Rose. Buying used is very similar to buying new. You need to assess your needs, estimate what you can spend and do your homework.
You have one additional variable to consider–wear and tear. If the car hasn’t been in an accident, has been well-maintained and runs well, you may have yourself a first-class car at a discount price. However, if you think you’ve found a good one, have your mechanic check it our before buying.
To figure out the going price for a used car, check your local classified ads and consult one of the used car price guides available at the library, such as the Kelly Blue Book Used Car Price Manuel (commonly called the Kelly Blue Book), which lists estimated values for used cars based on what car dealers are paying for various makes and models. Keep in mind that price guides aren’t the final word on a car’s fair value and that factors such as mileage can change a car’s value considerably.
For More Information/Reference Materials
- Buying a Car for Dummies by Diana Sclar
- Insiders Guide to Buying a New or Used Car by Burke Leon and Stephanie Leon
- How to Buy a Car and Not Get Taken by Brian Munroe
Austin Insurance Group | Local Texas Auto Insurance Agent | 512-339-2901 | Car Leasing vs Car Buying
