8 Tips to Help You Decide if You Should Buy New Used or Lease
Posted by: Dan on 11/10/2016
Should You Buy New, Used, or Lease? 8 Tips to Help You Decide
Any time you acquire a car, you have a number of decisions to make. What style of vehicle do you want? What colour? What features? Beyond the features of the individual model alone, you also need to weigh up what is best for you from a financial perspective.
Whether you wish to buy a car new, used, or even lease, the process can require much consideration. There are a number of questions to ask yourself when it comes to making such a big decision. Here are some to get you started.
1. Will I use the car for personal use or business use?
The most important question to ask yourself is whether you’ll be using your car for personal or business use. If it’s exclusively personal, then a lease is rarely the best option. If your own business, your boss, or your clients require you to be on the road regularly, then a lease can be wise.
Leasing makes it easier to upgrade to a new model every few years to keep your business looking modern and professional. It also offers a number of tax incentives and benefits that don’t come with personal car ownership. So, if you’re using the car for business, consider leasing.
2. It is financially viable for me to buy new?
It’s no secret that a new car depreciates in value quickly. This is part of the territory that comes with the enjoyment of a brand new vehicle and its ‘new car smell.’ If you find yourself in the position to afford a new car without too much trouble and want to treat yourself, a new ride is best.
If you’re at a point in your life where bills could make this a problem, it’s worth rethinking. While a new car is nice, if you have rent or a mortgage, university bills, and all sorts of other ongoing expenses, then buying a car brand new may not be the best choice at present.
3. Do I have the time to find a used car?
While a new car may depreciate, it can take a long time to find a used car you like. This is especially true if you have your heart set on a particular model. If you’re a high school kid on summer break, or a retiree with time to spare, finding a used car may be an easy thing.
If you have a busy job or other commitments taking up most of your waking hours, weeks of work shopping for a car you like may not prove worth it overall.
4. Will another family member use my car?
Depending upon your age and life circumstances, you may be buying this next car for you and other family members. It's a reality that new drivers are overrepresented in crashes on the road. A recent study found that while 20 to 24-year-old drivers accounted for just 9% of the driving population, they were found at fault in 15% of crashes.
If the new drivers have learned well, such a crash is likely to be a small fender bender at the shops rather than a big smash. Nonetheless, repairs on a new car can very quickly become expensive due to scarcity of parts. So, if there are new drivers set to use your next car, consider a used one to save time and stress.
5. Do I plan to resell it?
Whether you buy a car used or new today, at some point down the road you’ll need another new car. If you’re the sort of driver who values driving over shopping – and therefore will be just as happy to trade in your current car for credit towards your next vehicle – a used car can be the best move for you.
On the other hand, if you’re buying a more expensive vehicle now, you still want to get value for money if you decide to sell it later. This is where buying a new car can be the best. ‘Owner history’ is not something that may be really important to you now, but could be to the next potential buyer of your car. So, you’re if planning to resell one day, consider buying a new car now.
6. Will I live in the same area in years ahead?
People know moving house can require a big change in lifestyle. You may be closer to the beach, you may live closer to the city, and so on. Few people consider their car in this equation, but it’s vital. If you move around a lot for your work, leasing a car can become a real pain.
Similarly, buying a used car may be cheaper now, but will likely take longer to sell for a good price when you move. So, if moving is in the cards in the next couple of years, a new car can either make it easier to sell “like new” down the road, or even be worth the cost of shipping it with you.
7. Do I change cars often?
Buying new won’t be such a big deal if you get peace of mind over the long term. If you like getting a different car every couple of years though, used may be the better option.
This is because while some expenses are unavoidable if you like swapping cars every couple of years, others – such as sales tax and extras on a base model – can quickly add up and spoil your love of autos. So, if you’re regularly on the lookout for a new vehicle, buy used as a rule.
8. What is the best option for me today?
Good planning is important when it comes to getting your next car. It means doing research, thinking about what car best suits your needs, and also whether to buy it new, used, or lease it.
Ultimately, at some point a decision has to be made and you need to start moving forward. You may find it hard to decide which option is best for you, as each has its own unique advantages. If this sounds like you, just go ahead and pick what you feel is the best option for you today. Doing so will ensure your planning beforehand is put to good use, and gets your next car home to your garage.
What has your experience been like buying a new, used, or leased car? Let us know in the comments below: