When your car is reaching the end of the road and it’s time to look into a new (or new to you) car, there are a few ways you can proceed. Depending on your financial and family situation, you will need to make a few decisions about how you want to acquire your new vehicle and where to start your search. With many options available to you, here are a few helpful tips on where to start and what to consider when looking for your next vehicle.
Buy or rent?
The most important consideration when looking for your next vehicle is how you will pay for it. You can either buy your vehicle outright if you have the money available or saved up, you can buy the vehicle through financing and make monthly payments over a term loan, or you can consider a newly formed lease or standard lease. Leasing can be a good option for a shorter period if you are unsure what type of car you are looking for. Depending on your financial situation, you will make the decision based on what works best for you. The method of purchase will dictate the type of vehicle you will be able to purchase based on price range and approved financing.
New or used?
Buying a new or used car will affect many factors in your purchase. Depending on the age of the vehicle, you may not be able to get finance for it, as vehicles that have reached a certain age often cannot be bought via finance. If you buy a vehicle for cash, then you will be able to buy older cars, often at a lower price, but this can also come with some complications. New vehicles will have a warranty and you can buy additional maintenance packages, meaning you’ll have to put less money out of pocket should something go wrong with your vehicle. While newer vehicles have higher price tags, you are better protected in case of mechanical problems.
The best way to decide which vehicle to buy is to do some research and check your financial situation thoroughly. While you might want the latest vehicle with all those bells and whistles, you should ensure that you will be able to make all payments in full and on time. You also need to consider your monthly insurance costs on the vehicle you want to buy. So before you sign on the dotted line, make sure you’re making the right decision for your finances.
With a lease you may be able to sign a shorter term than a finance purchase, allowing you to change cars every year or two, and with a cash purchase you will be able to avoid monthly payments but be fully responsible for maintaining the vehicles. So whatever you choose, just make sure it works for you. A new car is super exciting and with a few simple steps you’ll be on your way to enjoying your new ride, whether it’s new, used, bought or leased.