Should You Buy a New Car or Lease?
New car sales are once again on the rise with a lot of demand coming from private buyers. While buying cars can help the economy it is important to consider if it really is the best option for you. You can’t listen to what anyone really says about buying new or financing your car, simply because it only comes down to your personal circumstances and what you can afford. However, you can listen to some advice that could help you come to the right decision quicker and may perhaps introduce some new options into the equation.
Make Sure You Pay the Right Price
The cost of models varies dramatically and it can be easy to pay more than you should if you base the cost on the same specs as similar models from other manufacturers. Therefore it is sensible to do some research into the going price of the vehicle you’re interested in purchasing. There are plenty of useful websites out there and you can always compare the price between reputable dealers online too. If you shop around you should be able to discover a better deal.
Consider the Depreciation of Your Car
When you lease a car you are paying the cost of the vehicle in monthly payments. As you’re renting the value of the vehicle quickly declines which is why you can often find incredibly cheap deals for excellent models. Your car will also lose its value if the cost of fuel increases, especially if your vehicle is known to be a gas guzzler. Other factors of depreciation include mileage and sometimes leases include penalties if you go over the mileage limit.
When you buy a new car it instantly loses money as soon as you have it delivered. In fact, it will lose the most money in the first year, so it’s something to consider when purchasing. There’s no getting away from depreciation when leasing a new car or buying outright, the best option is to buy used if you want to avoid this issue.
Have the Car You Want
When you buy a new car you can have it set up to the specification you want. It’s yours and you own it outright, so you don’t need to worry about being penalised or punished if you don’t stick to the contract. Additionally, there are no additional monthly payments to worry about on top of the gas, insurance and taxes that may need to be paid.
On the other hand, leasing opens up new car ownership to more people. If you’re unable to pay for a car in one go, the lease or finance options open up new doors. You can have a new vehicle too; you simply have to make sure you can afford the regular payments for the time of the lease or contract.
Where to Buy
You don’t have to buy directly from the manufacturer. There are new cars available from great dealers all over South Africa. Take a look on the cars.co.za website and find more about your options when it comes to buying or financing your next vehicle.