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New car buying options, lease or finance?

New car buying options, lease or finance?

Very few of us have the luxury of being able to afford to
pay cash for a new car. So when it comes time to buy a new vehicle, we often
turn to leasing or finance to help. Either choice allows us buy new without
having to save up for years, but both do it in a slightly different way.

There is no “best” way to buy a new car if you can’t pay for
it outright. There is only the best way for you given your circumstances at the
time. Both leasing and financing are viable options for most people, you just
have to decide which is right for you.

New car leasing

The main upside to car leasing is the relatively low
payment. It opens the door to cars you wouldn’t necessarily be able to afford
or justify the cost of. So instead of limiting your car choices to cheaper
models, you will likely be able to afford to step up a rung or two.
Alternatively, you can stick with the same model but load it up with options

Leasing can also include maintenance and servicing as part
of that outlay, which takes out one of the major running costs of the car.

The downside to leasing is that you never actually own the
car. Plus, if you go over your mileage allocation it can work out quite
expensive. You do need to factor in careful driving or add enough mileage into
the lease terms. Excess damage or wear and tear can cost too, so you need to
take good care of the vehicle while you have it.

Financing a new car

Financing a new car purchase is the other way of accessing a
brand new car when you don’t have the cash to pay for it. Essentially, it’s a car
loan arranged with the dealership. The amount is fixed, as is the period and
the monthly amount.

The upside to financing is that you will own the car once
its paid off so any residual value will be yours. You’re also not limited to a
strict mileage allowance and any extra wear and tear is yours to manage. There
is also more freedom with finance. If your life changes for whatever reason,
you can settle the auto finance early without the kind of penalty a leasing
company would charge.

The downside of financing is that it is more expensive each
month. Servicing and running costs aren’t covered either.

As we said at the beginning, there is no “best” way to buy a
new car, only what is best for you and your circumstances. If you would like to
discuss your options, why not visit your local Car Nation Canada location? We
would be happy to help!

Categories: Pre-Owned Inventory

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