Tips to Help Choose Between a Lease, Used Car, or New Car
When you buy a car, you basically have three options. You can buy it, a new car. You can buy a used car or you could lease a car. And this choice... a lot of people are very confused by.
But the way I look at this is pretty simple is that leasing is really a niche, and it's really difficult to figure out if you're getting a bargain because there is all kinds of things you have to know about how many miles.
If you want to have a new car every year, leasing is probably the way to go. But usually, the choice is between a used car and a new car. And I know that everybody says, "Buy the used car. Buy the used car. Buy the used car," because once you take it off the lot, it's, you know, a new car depreciates.
But the way to look at this is when you buy a used car, what are you really buying? You're not buying a used car, you're buying the leftover used car because think about it, when you had a used car, what did you do with it? You gave it to a family member, you sold it to a friend, or you gave it to a dealer and that dealer used it himself or sold to a friend.
So, when you go to a used car lot, you're getting the leftover of the used cars. You're getting the worst of the worst. And that's why... one of the reasons I don't like buying a used car.
The other thing is when you buy a used car, if you finance it, you can't get good interest rates. The interest rates on a used car are sometimes 30% to 40% higher than a new car.
And the other thing is warranty, you don't get the warranty. And the last one is most used cars now that are halfway decent, even though it's the leftover used car like I told you before, they're $15,000 to $20,000.
Now, if you go and look at a new car, I could find lots of new cars that I could bargain down to under $20,000. Some of them, they're brand new, they never had no miles. Some of them, the dealer used, but they're new and they have the warranties.
So, what I tell people is that with a new car, you could actually go in and figure what the cost is, how much they paid for it and negotiate with the dealer.
And what I tell people is, "Listen, you want to make sure you get a good deal, but you also want to make sure the dealer gets a good deal, because you want to develop a relationship with that dealer so that when you have an issue, maybe he'll help you out, when you need another car, he'll know who you are.
So, I'm not saying to use this and try to get, you know, the rock bottom price, I'm just saying when you buy a new car, you can get one for under $20,000. You get better financing. You get the warranty with the car. You can negotiate with the owner for new tires and things like that when they wear out. All kinds of benefits. You save money, you get a better product, and you know what you get.
With a used car, you don't know what they paid for it. You have no idea where that used car... and remember, this is not what I consider a used car, it's the junker of the used cars because those other used cars are in a family or some friend is using that.
If you have any questions about buying a car, feel free to give me an email.