Nowadays, safety and convenience is priority and owning a car is a must consider, especially when you have kids and a growing family.
Acquiring a car is one important family decision and I think it’s just wise to take a look at all options before doing so.
We have plenty of options.
Buy a Used Car.
Lease A New One.
Buy with an Auto Loan.
Fully Pay It, Deal or No Deal.
The question is which among the many options that we have will make the most financial sense especially when you belong to the average income earners.
Each option has its pros and cons; l’ll try to name as many as I can:
1. Buying in Cash or outright without a loan is the most cost effective in the long run, and the most hassle-free (provided you got cash). It adds up to your assets, and you can do whatever you want with your car whenever, wherever.
2. Pick smart when you pick used car. For a year now I have been using a second hand car that I bought from my brother, it is a Hyundai Eon 2012 model which by now has run 90073 km/h and is still in good shape.
I don’t use it for heavy duty or long drives; it’s just there to serve as my daughter’s personal school service and our ride when we’re doing errands. We don’t use it for out of town trips because it’s quite small, and being aware of the wear and tear aspect, i feel that i should take extra care of it. So far, so good.
3. With used cars, you can get lucky…. or not. If you’re not lucky enough expect to deal with hefty repair bills, or even worse (and I don’t wish this would happen to anyone) an accident. Been there done that, and regretted it.
Back in 2012, daddy K bought a second hand car for $1,500, it was unbelievably cheap! After a couple of months usage, it started acting-up during winter season especially; getting us stranded at roadsides when the engine packs up. Until the most unfortunate thing happened, daddy K car engine stops dead in the middle of the Pulaski Bridge in New Jersey, and as he was trying to jumpstart it, another car hits his car from behind leading to injuries and a totally wrecked car. He went through some minor medical procedures and a couple of grueling court hearings with 3 others involved in the accident, (we obviously learned the hard way) and decided to ourselves NEVER again opt for cheap used cars.
And then we go to our next option, car lease
4. Leasing a car, sometimes you get lower monthly payment as compared to financing a car with the same loan terms; since, as far as I can understand, daddy K said it’s like we’re only paying for the depreciation of the car during the years of usage rather than paying for the whole cost of the car.
Daddy K’s newly leased car now is being payed $400 a month (insurance included) for the first 3-year lease. The upside is that we get to use a brand new car (up to 5 years)which means minus all the old car hassles that goes with getting a second hand car.
5. This positive point about a leased car is something you might like if you only want to drive the car for a few years; and then opt for a newer model after 5 years (that’s s long as you stick with the terms and conditions of your lease).
6. The downside, as daddy K tells me, any hazards or risk of damage is not allowed, not even a scratch, because there’s this thing called wear and tear fees, so we have to by all means keep the car pristine!
Our Lease period is about to end in a year and a half time; and we’re lookin’ at buying a new car this time, we’ll see, if our budget permits.
To sum it up, I would definitely recommend that you buy over lease; a new one over a used one; but then again it depends on your driving requirements and budget. Asking around, doing a research prior to acquiring a car is extremely important. To give you more insights about it, visit Cars.com. This site offers must know car facts, client reviews and videos about making the right choices in acquiring a car.
I hope this article have somehow enlightened you on what decision to make. Good luck on you car acquisition. And do let me know your thoughts on this.