No matter how many years or vehicles have passed since that first purchase, car buying remains a major decision. Once you have decided what type of car or truck will fit your personal needs, the question of buying new or used is confusing. And what about leasing a new car? The right answer is unique to the purchaser – there are pros and cons to new, used and lease options.
You might think that buying a used vehicle is cheaper than a new one – but that may not be true. Some automotive dealers offer seasonal or model clearance deals that are financed at a lower interest rate than their used counterparts, which can save buyers money in the total payout. Edmunds recently did a study comparing the costs of new and used vehicles. In some cases, the new car purchase was the better deal, as well as including a warranty and that new-car smell.
But if you are on a strict budget where monthly payments are the bottom line, a used car could fit your needs. You may also be able to buy a slightly used car with a few extra bells and whistles for less than the price of a no-frills new one. Recent certified pre-owned programs can offer a little peace of mind, and some used cars are still covered under the original factory warranty. Research the extras as well as any guarantees or paperwork – not all warranties are transferrable. Always insist on the right to have a vehicle inspected by a licensed mechanic of your choice before signing on any dotted lines. The cost of repairs could add dollars to the total cost.
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