It’s time and you have come to the realization that you need a new car. It’s been a while since you last purchased your vehicle and leasing now seems to be a much more affordable option however you still aren’t sure if buying a new car or leasing works for you. There several major things you need to consider before making that decision.
- Are you the type of person that gets bored with the same vehicle for more than 4 years? If this is you then leasing may be the better option. Most banks will offer you terms from 2 to 4 years. They calculate depreciation based on the time and mileage you plan on keeping the car for. After the term is up the bank takes the car. You won’t have to worry about depreciation due to prior accidents that may get flagged on a Carfax report and most warranties are valid from 3 to 4 years so the chances of getting stuck for mechanical issue are slim to none. Once the term is over, the bank takes the car and you are free to get yourself into another vehicle.
- Are you someone that drives a lot? If you are than leasing may not be the option. Most leases are for 10,000 miles a year. You will have the option to buy additional miles upfront for a cost however your monthly payment will increase to compensate the additional driving. If you go with the standard 10,000 mile option know that the bank will penalize you 25 cents per mile you go over. You do the math on the overage, it can be quite expensive. Also take note that if you return the vehicle under mileage you will not get a credit.
- Are you a careless driver? If you are one that hit curbs while parking, get parking dings and dents in parking lots, or mysterious scratches show up on your bumpers, you may want to skip on leasing. The bank will hold you liable for any damages incurred on the vehicle during your term that is not repaired up returning your vehicle. Again, this can be costly.
- Do you need to sell your older vehicle before getting a new one? Regardless of buying or leasing you may want to consider selling first before negotiating a deal on your new vehicle. Most dealers do not want your older car and will offer you a price based on flipping it to a local wholesaler. If this is the case, you wont get any tangible offer as they may low ball you making money off the wholesaler. Many leasing companies won’t even consider trades as they just deal with sales. You can try selling your car for cash privately however it’s not as easy as you think. With so many tire kickers and people that need to finance from a bank, you may not be able to sell privately. A great alternative to selling privately is using a car buying company like us here at RCO Cash for Cars.
If you are one of those that need to sell your older car, truck or van first, RCO Cash for Cars can get you a cash offer with same day payment. Our company also deals with disposition on junk and parts cars making it even easier to sell your car quickly and without hassle.
For a free online quote, just fill out this short online questionnaire and one of our reps will contact you shortly!