Buy New, Buy Used or Lease?
When it’s time to shop for a new – or just “new to you” car, how do you make the decision about whether to buy a new or used car – or whether to consider a lease? Here’s a quick comparison based on an article you can read in its entirety at Edmunds.com:
First – some things you’ll want to consider in order to compare your options:
1) How long do you plan to drive the vehicle? Higher costs have led to longer term loans – with a five-year auto loan being most common these days.
2) How many miles will you drive per month? That will impact every option to a degree, but possibly leasing more than ownership.
3) What’s your budget – not just in year one, but over the long haul?
In general, what you’ll find in this Edmunds’ comparison of the three options is that, over a six-year period, used-car ownership will be the most economical but only slightly better than the with a new car when you factor in the value of the car at the end of six years. And remember, at the end of the lease, you don’t own the car! So unless you just can’t do without that new car smell, purchasing a used, or even a new car may be your best bet.