Dear friends, many of you, at the thought of buying a new car, wonder what to choose – leasing, credit, or buying for cash … We immediately exclude used cars and talk only about new ones!
Not because they are bad, but simply because they are not new, and based on the latest marketing strategies of almost all manufacturers – cars are made to be reliable only for 3 years, then they begin to break, which forces you to buy a new car (supposedly a new model, new security systems, new features, etc.), we gradually come to the reality that we change cars as we change iPhones. If you think like an economist, and have enough time to visit an auto services shop, than we will consider the purchase of a used Auto, which I will definitely write in my next articles!
Therefore, let’s not compare new and used, and let’s talk only about new cars!
1. Leasing – is a long-term rental agreement . You drive the car for three years, then you get a new one. The depreciation in leases are comparable to the average market depreciation of a new car for the same 3 years.
2. Credit – the same as a leasing, only with a headache, such as: how to sell it and be profitable, and what to do if the car gets in an accident, etc.
3. Purchase for cash! A great option if you are a drug dealer, have continuous cash flow or you need to write off taxes from the company at the end of the year!
If your annual mileage fits into the permitted 7,500-15,000 miles per year, the ideal option – leasing!
But, it turns out, not everyone qualifies for a lease and it is necessary to meet some basic minimum requirements which are not complex
– to have SSN
– to be a diligent creditor for at least six months
– it is also desirable to have 2-3 credit lines (credit cards)
– ideally, to have leased or financed a car in the past, without repossession or late payments. Some banks also require a green card or legal status to stay in the country, but this is not necessary!
Everyone who is waiting for an interview at the political asylum can apply for a lease, according to the first three criteria! What I like about leasing, is that you drive a new car all the time, and have no headache, repairs or service charges, additionally you have a small monthly payment, compared to a loan! Some people will object that the car is not theirs … Yes, it is true , just as if the car is not yours if you have a loan! Try not to pay for the loan for 2-3 months and the bank, who financed your car, will quickly repossess it and show you who’s the owner!
Yes, possibly I’m losing a little more money if I calculate in terms of “cost of ownership per month” … Free roadside assistance (broken, broken wheel, ran out of gasoline in the middle of nowhere), warranty, free substitution in case of repairs and and the incomparable smell of a new car!