The easiest way to save money when buying a car is to buy a pre-owned car instead of a new car.

Think about it.

When buying a new car, it literally depreciates thousands of dollars the moment it is driven off the lot. From a financial standpoint, since it is a fast-depreciating asset, it makes sense to buy a pre-owned car.

If you decide to buy a used car it is recommended to buy a certified pre-owned vehicle from a dealership. That could come at a higher price, and some of the maintenance will be covered under a manufacturer’s warranty. It’s not recommended to buy a car from a secondhand lot or from an individual. You never know for sure what you’re getting and repairs can be costly.

Make a list of the things that are important to you. Do your research. Here are some things to consider:

  • Safety ratings.
  • Low mileage.
  • Age of the car.
  • Accident reports.
  • Previous owners.
  • Reliability.
  • Leather seats.

Make your list and stick to it. Don’t settle!

When researching cars, note that they make changes to the designs every year, so the safety ratings can vary vastly from one year to another. It’s crucial that anyone looking at these reports is cognizant of the year when researching cars. The two resources that are recommended are Consumer Reports and U.S. News & World Report. I like to combine all that information to make decisions.

Many buyers don’t want a used car. They prefer a new car every few years and there is always an option of leasing one. Since the pandemic, manufacturers have cut back on production and rental car companies have been reducing their fleets. In general, people are driving less. That doesn’t mean the cars aren’t available. It might mean you’ll be looking a little longer than anticipated to find your dream car.

There are so many variables to consider, from your credit rating to where you live. Below is a list of some pros and cons to consider.

Pros:

  • When leasing a car, you will be driving a new one every two to three years.
  • The manufacturer’s warranty is in effect for the life of the lease.
  • Monthly payments on a lease are generally lower than buying.
  • Less money is due at signing.
  • In some cases, sales tax is only added to the down payment and each monthly payment.

Cons:

  • When returning a leased car there usually isn’t trade-in toward a new vehicle.
  • Mileage limits and excessive wear fees can add up to nightmarish proportions.
  • Excellent credit is required to lease a car.
  • Any damages or dings made to the vehicle cost you a lot of money at the end of the lease.

There are many alternatives when deciding to purchase or lease a car. Look through all the options available and choose the one that’s best for you.