In our previous we discussed the main characteristics of leasing a car. Hence this article will concentrate on the benefits and drawbacks of buying a car. Car buying is one way of car financing and like other ways of financing, it also has its pros and cons. Following we will discuss the drawbacks and then the benefits of buying a vehicle.
Drawbacks of Car Buying
- New cars have got rather high prices when first in the market. But you will never know how much its resale value will be when you decide to sell it or trade it in. Usually, vehicles lose 30% of their price each year. Hence, the longer the vehicle stays with you, the lower its resale value becomes.
- When buying a vehicle you will have to pay both the down payment and the monthly payments. Buying is different from leasing in this aspect, because when leasing, you may not pay any down payment at all, or if you pay a considerable amount upfront, then you will have to pay lower monthly payments. This does not work in the case of buying; both down payment and the monthly payments may be rather high.
Benefits of Car Buying
- If you do not want to change a vehicle every 2-3 years, then buying a vehicle is the right choice for you. Just make sure you select the car that fits both for business and for family requirements. Once, the vehicle is yours, you can do whatever you like with it, including; making major alterations on it, changing its color, adding equipment or removing it, selling the vehicle, etc.
- You will have no mileage restrictions on the vehicle. You can drive your car as many miles as you want.
Now that you know the main benefits and drawbacks of buying a car, you can decide whether to buy or lease one. Feel free to share your thoughts on this topic below.
You can read about the benefits and drawbacks of car leasing by clicking here.