Should You Be Buying a Used Car or Leasing a New One?
You want to buy a new ride. You’ve got to keep an eye on your budget. Should you buy a used car or lease a new one? What’s best for your budget. Since our dealerships are available for both options, we thought we’d give you the pros and cons of each approach though a simple question and answer format. We hope it will help guide you as you make your decision about what ride you’ll buy.
Understanding the Pros and Cons of Leasing vs Buying Used
To make a decision, it helps to ask yourself the following questions.
Do you need something bigger than your new car budget would allow? This is a major reason that people shop used cars. For instance, they can afford a new car if it’s a small two-row SUV, but they cannot afford the three-row family SUV they need.
Do you want a higher luxury level than a new car budget would allow? Often people buy used because they desire either a high trim level of an affordable brand or they want a true luxury car. By buying used, they get more for their money upfront.
Do you like to trade often? That’s a major reason that many people choose leasing new cars. They want to stay flexible and ready for the next technologies.
Do you want to personalize your ride? If so, you don’t want to lease your vehicle. It makes more sense to buy a nice used car that you can accessorize in any way you want.
Does your ride get roughed up by regular usage? If you are constantly challenging your SUV by driving on gravel, sand or grass, you probably need to own it. You can’t risk harming a leased car.
Do you drive a modest number of miles per year? If so, leasing is definitely for you. Many people are conservative drivers, rarely going over the 12,000 or 15,000 limit. That makes leasing a perfect fit.
Do you need to save money up front? In many cases, a used car is less expensive when purchased with good financing from a reputable dealership. However, leasing is favored by some who want the benefits of a new car while still saving money.
Are you using the car for business? Your accountant can explain best, but leasing a car is often the best way to utilize a car for business and write it off on your taxes.
What are insurance rates? A used car generally doesn’t need as high an insurance rate as a new one. That’s something to consider when deciding to lease. You should discuss this with your insurance company before making a final decision.
Do you worry about ownership costs? Leasing is often the choice of those who worry most about ownership costs. The vehicle is covered by a warranty. On the other hand, a used car may eventually need repairs that aren’t covered by a warranty.
Do you tend to drive the same car for more than 5 to 7 years? If so, a relatively new preowned car is the obvious choice. You can get an extended warranty, stay on top of regular maintenance, and drive as many miles as you want.
Do you worry about new car depreciation? One reason that many people choose used cars is because a new car depreciates quickly. However, leasing takes that into account as well. So there really is no difference between buying used and leasing when it comes to depreciation.
What if you decide to buy the car you are leasing? This is always a possibility, and many drivers take advantage of the ability to purchase at the end of their lease. You will have a guaranteed purchase price from day one. If you are ready to lease, check out the many brands under our dealership umbrella.
Now that you know more, take a moment to chat online with our staff. They are available to give you more facts about buying used from Earnhardt Auto Centers or leasing from one of our many dealerships.