So you’ve decided that you’ll be getting a new car in the near future. However, you’re wondering if you should buy the car or get it on a lease. Both have their pros and cons and should always be considered when making this big decision. Let’s dig further into this and see what the best plan of action is! As New Yorker’s we will also try to consider the special geographical circumstances related to the aforementioned decision process.
Car buying
Car buying is essentially buying a car just as it is. In this scenario, all legal documentation is handed over to you, and you’re the sole owner of the vehicle in question. Though the buying process is a long one, in the end, you’re the new owner of a vehicle (given that it is new) and are essentially the first person who will try it out. If you’re buying a used car or ‘as is’ car, then you’re also inheriting a lot of other factors, such as pre-existing conditions or slight modifications in the original model.
Pros and cons
Buying a car can have several benefits. For starters, if the car is relatively new, you’ll have access to the latest automotive technology, which will give you an edge on others. Furthermore, a good manufacturers’ warranty is something that will keep you clear for the next few years. The longer you are able to hold onto and maintain a car, the more money you save when compared to a lease.
Downsides to buying a car are faster depreciation as new models and vehicles are launched on a monthly basis. Furthermore, buying a car is not a great investment in general since the prices always drop. Depending on how long you intend on holding onto the car (which usually is shorter than expected for many different reasons), your costs can end up being the so close leasing, that the risk and headache is simply not worth it.
NYC residents must also weigh the resale demand for their car versus and out of city car. All things being equal, a savvy consumer will purchase the out of city car over the potentially abused city car. Everyone knows the wear, tear and stop and go miles which a city car endures.
Car Leasing
This is a method of obtaining a car, either new or used, in which you do not have to pay for the entirety of the car. You will only be paying a portion of that amount. That portion that you pay for accounts for the depreciation the car will go through in the next few years for when you’ll be ‘owning’ the car. This is similar to renting since you decide how long you’ll need the vehicle for and the subsequent modifications in it. You will also need good credit in order to lease a car, so unlike buying, coming with a wad of cash will not get you far.
Pros and cons
In this scenario, there are several benefits. First and foremost is that monthly payment is very low, compared to the other option. The thrill of getting to drive a new car every few years is an additional benefit. You most probably don’t have to worry about warranty as well, since it is covered in the package and there is no compulsion to trade or sell the car to get a better version.
The downsides to this are that you’re only set to drive a particular number of miles. Furthermore, you need to ensure the maintenance of the car and since payment is made on a monthly basis, one should also have a stable and predictable income. If you’re the type who is OK with driving one car for 7+ years, buying may indeed be more fiscally responsible than leasing.
What do the experts say?
Several car enthusiasts recommend leasing since, as mentioned above, driving a new car every few years has its charm and is what makes the experience of driving fulfilling and worth it. Furthermore, this ensures staying away from unnecessary finances and making the most out of the limited time you’ll have with your new car! Furthermore, leasing a car in areas like NYC can give you the peace of mind you desire along with great warranties for a cost that’s well worth it when compared to buying.
