[ad_1]
If you are planning to buy your next new car with cash then the process is simple and straightforward, try to choose the one you love, negotiate for the best deal you can and take it home. But if you are like most new car buyers and need money to buy a vehicle, you can try the following options.
1. Buying a Car
Firstly, you can apply for the loan, put up some money and buy the vehicle of your choice. Most of the buyers take this route. With the traditional method you put more money towards the price to lower your monthly payments. Lenders love it when you put money down on your new vehicle because it shows them that you have a vested interest in repaying the loan so you protect their investment.
You should still negotiate the best deal on the purchase price. Also, don’t be afraid to shop around for the best financing deal available. The dealership you buy your new car from will have a few options available to you, but they’re rarely the best deals. Look online for some comparative rates and use payment calculators to help you figure out how much you can afford to buy a new car. You should also visit the bank where you deposit your paychecks and the local credit union. They both have financing options that will likely be different from what you’ll be offered at the dealership.
2. Car rental
If you’re not sure you want to buy your vehicle outright and want to make a lower down payment and lower monthly payments, perhaps a lease is a better deal for you.
Leasing a vehicle means that you never own the vehicle outright, you only pay for the right to drive it around. The dealership will continue to own the vehicle and hence will do all the scheduled servicing and maintenance of the vehicle free of cost while you drive it.
However, there are two major disadvantages to leasing a vehicle instead of buying it. First of all, to be clear, the vehicle is never actually yours. At the end of the leasing agreement the car is returned to the dealership. You can lease a new vehicle if you want, but all the money you paid for the past few years has gone into lease payments.
There are also severe limits on how many miles you can drive your leased vehicle each year. Leases are usually limited to between 12,000 and 15,000 miles per year. If you exceed this limit, you pay extra for each additional mile you drive. This can add up to a lot of money if you go over the allowed few hundred miles.
With a traditional purchase you own a car that you can continue to drive until it is scrapped or simply resell the vehicle and use that money to buy another new car .
With a lease you drive a new car every day for a few years, pay less for the privilege, but have no car when the deal is done.
Two great options, but in the end the choice is up to you.
[ad_2]