You need a car but don’t know where to start. This is a common scenario for people in need of new wheels. If you’re new to the car market, shopping for a vehicle can feel hectic. Before you sit down and think about the price, make, and model, you need to decide if you want a new or used car. We can provide assistance if you’re stuck in the new vs. used car debate.
Here are some tips to help alleviate stress and help you get the car of your dreams:
Things to Consider When Buying a Car:
- Set a Budget and Stick to It
The first thing you need to do before you start looking is set a budget and stick to it. When looking at cars, it can be very easy to overlook price when being awed by things like features, premium interiors, and paint colors. Setting a budget can help veer you away from cars out of your price range and lower the risk of overspending.
- Find the Best Fit
Before the car hunt begins, ask yourself what you are looking for in a car. Are you looking for heated seats or maybe more space in the trunk? Start by listing non-negotiables and other car components you may be willing to budge on. Taller vehicles like SUVs are popular because they come equipped with an open back and can handle all kinds of weather. Heavier duty trucks like the Ram 1500 are suitable for the classic towing and long hauling of heavy equipment.
Why to Buy New?
Vehicle History – One of the benefits of buying a new car is that the owner doesn’t need to obtain previous reports since it’s fresh off the market. When looking at a used car, you may need to shuffle through lots of vehicle history, which can take time. You can visit websites like CARFAX if you’re looking for in-depth reports of the car’s history, including the number of owners, previous damages to the vehicle, and the services performed on them.
All the Glitz and Glam – Another benefit to buying a new car is all the incredible features. Upgraded seats, the latest technology, and better performance are just the tip of the iceberg when purchasing a new vehicle. Buying a used car is very unlikely to get all of your boxes checked off, and you may have to compromise.
Little to No Maintenance – When buying a new car, you get it fresh and unused. This includes little to no evaluation considering it’s in a new, peak condition and may not require a trip to the mechanic for a while. If your new car breaks down, you will likely have it fixed for free under the included factory warranty for the first miles.
Why Buy Used?
Save Big Bucks – If you aren’t looking to break the bank, buying a used car may be the way to go. Used cars are great options if you’re looking for a reliable but affordable set of wheels. When you spend less money on the car upfront, you can put extra money into upgrades to your car. If you want all the glitz and glam, upgrade your radio to a touchscreen or get new upholstery. These touches can easily create the wow factor without causing you to go over budget.
Lower Insurance Rates – Older vehicles are typically worth less money; therefore, it costs less to insure them. When buying a new car, if you get a loan, you will likely have to have full insurance coverage, which can be very expensive. However, by buying a used car, you may be able to save money on insurance in the long run and put the money toward other things.
Less Chance of Depreciation – Newer cars lose value quickly within the first year they are purchased, but used cars have little to no depreciation. Depreciation is an essential factor to consider because it determines your car’s long-term value. This can come into play later if you want to trade in, total, or resell the car.
Both new and used cars are great options. It just depends on what you need and where you set your budget. Contact us today if you’re interested in our extensive selection.
Allways Chrysler Dodge Jeep Ram
If you’re in the market for a new set of wheels, you might be wondering about the difference between lease and finance and which option might be best for you. The answer is that it depends on your unique set of circumstances and your end goal. To help you figure everything out, let’s start by defining the difference.
What Does Financing a Car Mean?
Financing a car means getting a loan from a financial institution to buy a car. So how do car loans work? Well, you’ll make payments to the lender over a set period. The costs will include the amount of money you borrowed, interest, and fees. In the end, you own the car.
What Does Leasing a Car Mean?
Leasing a car simply means that you are renting it. You are paying for the ability to use the vehicle rather than buying it. During your lease, you’ll pay the cost of the rent, as well as taxes and fees. When the lease is up, you’ll be required to return the vehicle in good condition.
Pros and Cons of Leasing
Like with almost anything, both options have pros and cons. But one is probably better suited for your needs than the other. The benefits of leasing a car can be:
- Lower monthly payments
- Lower upfront out-of-pocket cost
- Generally covered by a warranty
- No sales tax to worry about
- No concerns about depreciation
Of course, one of the most significant downsides to leasing a car is that you won’t own it even after all the money you’ve put into it. Lease contracts can also be complicated, which makes it hard to shop for the best deal. Here are some of the other cons of leasing to consider:
- Potentially higher insurance premiums
- Nickle and dimed for excessive wear and tear
- Fees and penalties for putting too many miles on the car
- Fees for terminating the lease early
- You’ll end up with no trade-in
Pros and Cons of Financing
The ultimate benefit to financing is that the car will be your property once the loan is paid in full. Some of the other benefits of financing are:
- No limits on your mileage
- Lower insurance costs
- The right to sell the car whenever you want
- Freedom to make modifications or customize the vehicle
The downside to financing could be a higher monthly payment, but this isn’t always the case. Some other cons to consider:
- More upfront costs (sales tax and down payment)
- Depreciation of the vehicle
- Maintenance costs once the warranty is up
Should I Lease or Finance?
The decision depends on what you need and what is most important to you. If you like driving something new every few years, don’t need to go on long-haul road trips a lot, or don’t have a lot of money upfront, leasing might be the right option. Some leases also allow you to have the opportunity to buy the car when the lease ends too.
If you prefer a long-term option, you will want to buy. Financing and owning a vehicle is also the right choice if you must put on many miles or want to make customizations to your car, truck, or SUV. You won’t be able to do those things with a leased vehicle. Leases limit the miles you are allowed to drive each year, and if you go over, there are fees you must agree to pay per mile. That can get pretty expensive if you aren’t careful.
The consensus is that it generally makes more financial sense to go for ownership rather than a rental. But the choice is yours. Depending on your wants, needs, and circumstances, one might be a better path than the other.
If you need help concerning any aspect of the buying or financing process, contact us today. We’re happy to help you by email, phone, or in person.
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