Should I Lease a New Car or Buy a Used Car?

For any American, owning a car symbolizes independence, freedom, and status beyond just the utility that it offers. Buying a car remains one of the first and most significant achievements for most Americans with a driver’s license, being something of a rite of passage, especially for teenagers. The type of car a person drives can say a lot about who they are as a person, their priorities, what they need, want, desire, and where they are in their life. Most people buy a car to suit their needs, versus their desires because with the price of vehicles being so high nowadays, most people struggle to afford a vehicle to fit their needs let-alone to buy a “fun” car. I’ve had a lot of clients recently asking the same question: “Should I buy a used car or lease a new one?” A reputable auto concierge or auto broker can help answer these questions and to help you find the right vehicle to suit your needs, wants, and desires. Who knows, you might be surprised to find out all of your “must-have” requirements can be found in the same “fun” car you’ve always wanted.

Reasons To Consider When Leasing a New Car

Because needs, wants, desires and buying motivations vary for so many people, car manufacturers continue to introduce and roll out new models. This creates a constant buzz around new car designs and the latest technology. Leasing a new car makes it more affordable to get the newest vehicle with the latest technology more often. Leasing a new car allows people to get a new car every few years with a lower monthly payment and a smaller down payment. Leasing a new car is an excellent idea if you understand what is involved. An experienced auto concierge or auto broker can explain the pros and cons of leasing a new car, so make sure you are working with a company that has the first-hand experience with car leases and who can explain exactly how a new car lease works.

I Want To Own My Car

For those clients who prefer to buy a vehicle and own it, but who can’t afford or don’t want to pay the price of a new car, a great alternative is to seek guidance from an auto concierge or auto broker to help find a quality used car. There is plenty of quality used cars available that have been driven carefully and maintained regularly. Buying a used car can save a lot of money because the previous owner has already taken the hit for its depreciation. Buying a used car also allows buyers to get a nicely equipped vehicle with newer technology for a lower price. For the most part, the technology that’s a couple of years old isn’t that much different than a current model car (unless for a drastic redesign). Technology advances in the automotive industry have increased vehicle quality, so there shouldn’t be any reliability concerns when buying a used car. Most cars nowadays will drive well past 100,000-or even 200,000 miles, so don’t be afraid to buy a used car with higher miles. Just make sure it has been well maintained.

Highlights of Buying a Used Car

• The retail value of a three-year-old car is approximately half that of a new model, which means you could easily acquire all the benefits for a lower price.
• Generally, insurance rates are lower for used cars (contact your insurance agent for a specific quote)
• Often, there are also many extended warranty options available for used vehicles.
• Some used cars are Certified (CPO) and come with an additional warranty
• If you choose to finance a used car, buying a Certified (CPO) car would be good to consider because they often have special APRs.
• Most used cars already have a few dings or scratches, so you don’t have to worry as much about preventing cosmetic damage as you would with a new car.

Highlights of Leasing a New Car

• Lease programs provide you a broader choice in models as well as the advantages of a new car, such as maintenance. Car brokers often help you with making the right selection.
• The down payment for leasing a new car is generally lower or non-existent so that you can get a more expensive vehicle for lower monthly payments.
• Depending on the state you register or title the vehicle, you could pay less in sales tax when leasing a new car.
• The residual value is disclosed upfront, so its value is protected
• New cars are usually leased for 2-3 years giving more options to get another new vehicle sooner.  
• Depending on how you file your taxes, you may qualify for a tax deduction when leasing a new car (contact your tax consultant to find out if you are eligible).

When making your final decision to buy a used car or to lease a new one, consider how long you plan to keep the vehicle, how your needs may or may not change in the future, and your budget. To make your car buying experience more comfortable, consider getting the help of an auto concierge or a trusted auto broker. Contact Open Road Auto Concierge to speak with a car buying consultant who will walk you through the car-buying or car leasing process and help you determine which vehicle and payment method is best for your specific situation.