Image Courtesy Of John Volante
Next to purchasing a home, buying a car will be one of the most expensive investments you will make in your life. How you decide to handle that expense is completely in your hands.
But, along this path, you will have some decisions to make. Should you buy new or used? Should you finance or lease? Or just buy a bicycle instead!
If money is an issue, there are a couple of things you need to think about when it comes to leasing a vehicle. In the short term, this would not be beneficial financially. But, if you are thinking long term, it will save you more money. Let’s see why.
When you finance a car, it will eventually become yours. All car dealerships will have leasing programs for you whether you are looking to buy new cars or used cars from dealers such as Oodle Cars. You will decide with the salesperson on the loan term. During this time, you will have built up equity based on the car’s value when the term is up. The money that you were using for the equity will become money in the bank when you are done. It will just take a little while to hit your pocket.
However, with the intent to own the vehicle after the term is up, you are going to run into higher monthly payments, as opposed to possibly leasing a car. You could also be looking at a large down payment when financing a vehicle. And, if you are struggling a bit financially, this probably won’t be a good option for you.
Initially, with financing a new car you will have a factory warranty that will take care of most major issues that may face your car. So, as far as having to put extra money into the vehicle for various things, you will be able to save money here. Of course, once the warranty expires, everything will now rest on you. You can choose to extend the warranty, but in the long run, you will have to take care of any car issues you could run into. These are just some of the pros and cons of dealership financing that you will have to learn about.
By financing, you will have the opportunity to sell anytime that you want. This makes it a lot easier to sell if you decide to change your mind after a period of time. Whoever buys it will take care of the rest of the cost of the vehicle and you can move on from there. You will just have to be careful of the depreciation costs of new vehicles. Its value will immediately decrease once it leaves the lot, which can lead to future poor resale values.
Ultimately, you have a big decision to make and only you can determine what you can and cannot afford. If you are trying to save money, read the many blogs on saving money that are available to you. You may have to give it some time before jumping into potentially financing a vehicle, but this time could be just what you need to save and decide on your right path. If you aren’t able to purchase a new car, there are plenty of “new car smell” car fresheners that you can purchase! Nobody will ever know the difference.