Shopping for a new car? Learn what’s best for you. Buying new or used? Leasing?
Once you have determined how much you would like to spend on your next car, a recommended next step is to decide between buying new, buying used or leasing. Knowing a few of the positives and negatives of each will help you to decide what will be best for you.
Buying a New Car
Positives: You can order the exact make, model and options that are most important to you. Consumer protection laws apply. The car has value and becomes an asset as the loan is repaid and tends to be more reliable. Plus, most warranties cover repairs and parts.
Negatives: New cars can be expensive; and their value depreciates almost immediately.
Buying a Used Car
Positives: Used cars tend to be less expensive than new cars; and as the loan is repaid, the car becomes an asset.
Negatives: A used car’s history may be unknown and may not come with warranties. Older cars may cost more to maintain.
Leasing a Car
Positives: The monthly payments are comparatively low, and leases are usually short-term, so you can drive a new car every few years. Plus, leased cars typically come with comprehensive warranties.
Negatives: It may be difficult and expensive to get out of a lease agreement. Plus, the agreement usually has mileage limitations per year. If you go over this limitation, you’ll pay more.
Because financing increases your total costs, if you decide to finance, make an appointment to talk with one of our Member Experience Advisors so that you are prepared to get the best deal. Visit your branch or call 800.433.7228.