Compare buying vs. leasing

There are both pros and cons for buying and leasing respectively. Buying is costly endeavor. And if you are financing your purchase, you may have high monthly payments. But when the loan is paid off, you become the owner of the car and can customize it to meet your taste and drive as long as it runs. On the other hand, leasing does not need heavy investment, in which you will have to pay a little amount or lower monthly payments. However, at the end of the lease term, you will have to return the car back to the dealer. So, whether you want to buy or lease depends on your needs and financial situations.

Compare new vs. used

Understanding the pros and cons of new and used cars are necessary if you are open to both options. If you buy a new car from a certain automaker, you have to spend more money; but you will get a full new car warranty and some free maintenance as well. On the other hand, buying a used car will be cheaper, but warranty period will be shorter or possibly not at all. But you are buying a used car, and then accompanying an experience mechanic during test drive can help you figure out the actual condition of the vehicle.

Consider ownership cost

The ownership cost is often overlooked by most consumers while buying a new car. There are many cars that are cheaper to buy but more costly to own. For example, when two different cars of about same prices are purchased at the same time, one might depreciate faster or more expensive to maintain or insure. So, before buying a new car, considering long-term ownership costs is crucial that may include fuel efficiency, depreciation, insurance, maintenance. This can help you take smart decisions and save money in the long run.