If you are in the market for a new car it is important that you check out all of your options. For example, how do you feel about leasing a car as opposed to buying it? Asking yourself this question may open up a whole new world of possibilities for you if you feel comfortable leasing a new vehicle. (Here’s some information: Leasing vs Buying) Regardless of whether you are interested in leasing or buying there are few things that you have to get straight in order to get the best deal possible.
Car Price Negotiation Tips
Make sure that you are not too eager when you walk into the car dealership. Salesman can smell an eager buyer coming from a block away. Once they know you are interested in leaving with a new car that day it will be difficult for you to get the best deal possible on a purchase, or lease, price. This is simply human nature. Instead, make sure you act ordinary while looking at the cars and ask questions regarding each make and model.
It is even a good idea if you mention that you might consider a lease. Sometimes the salesmen do not want to lease a car, they want to sell it. This might give you some leverage during the negotiating process if you decide you want to buy as opposed to lease.
The Benefits of Buying a Car
The biggest benefit to buying a car is that you will actually own it outright someday. Once you have the car paid in full it will be yours to keep for as long as you wish. You have the benefit of having a car without a payment. You will also have the option to sell it at anytime if you wish (unless you’re upside-down, which makes matters harder). This is important because with a lease you will never have complete ownership of the vehicle.
Once the lease is paid in full you will have to turn the car back in to the dealership. Furthermore, when you own a car the car insurance on it is typically cheaper than if you decide to lease. This is because the insurance limits on your policy are lower when you lease. In turn, this can help make the total cost of ownership lower when buying as opposed to leasing.
Lastly, when you buy a car you can put unlimited miles on it. With a lease, however, you are limited to the number of miles you can put on the vehicle over the life of the lease, or per year. The biggest drawback with buying a car as opposed to leasing is the monthly auto loan payment. The monthly payment when buying a car can be higher than if you were to lease. Furthermore, you may be required to put down a bigger down payment on a buy as opposed to a lease.
The Benefits of Leasing a Car
Lower out-of-pocket costs for maintenance is one of the big benefits of leasing as opposed to buying. When you lease a new car there is a good chance that nothing is going to go wrong with it over the life of the lease. In most cases the lease will last for three years. Within this time period, in most cases, a car will perform just fine. You will not have to take money out of your pocket to pay for costly repairs or even new tires. Once it is time for the tires to be replaced it will probably be about time to turn the car back in to the dealership.
In addition, when leasing a car you will never experience negative equity. You are not forced to absorb the negative equity when you turn the car in as you would when you went to trade a car in after three years. You are basically paying for the depreciation of the car during the lease period and nothing else. One of the major drawbacks of leasing a car is that you will always have a car payment. There will be no point where you pay the terms of the lease off and get to keep the car. After the lease is up you must turn the car back in and lease another.
As mentioned earlier, when buying a car you can actually pay off the car and take ownership without having a loan to pay. In addition, the mileage restriction is a major drawback for some people. Many people want the freedom to be able to put as many miles as they want on their vehicle.
What do YOU think is the best option – leasing or buying a car?
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