The Pros and Cons of Each Car Buying Method

These days, there are so many methods to consider when you are buying a car. You can take your pick and decide which method is the best one for you. But before you do that, you need to know a bit about all the methods, and what their pros and cons are. The information below will help you out with that.

Buying from a Used Car Dealer

Pros

The good thing about buying a car from a dealer is that the prices tend to be pretty good. You can get cars that have not been on the road for very long. And they will be a lot cheaper than buying the same model brand new. So, you can pick up some great bargains if you’re willing to scout around and find the very best deals that are out there. And you can usually get the deals done quickly. Head to http://www.tch.co.uk/ to find out more.

Cons

The main downside to buying used cars is that you can be tripped up. If you don’t know what you’re looking for, you could buy a car that has a fault. That fault could be minor, but it might turn into something bigger when it’s been on the road for a while. This is why it’s so important to have the car checked over before you actually put pen to paper on a deal to buy the car.

Buying a Brand New Car

Pros

The best thing about buying a new car is quite simply that it’s new. When you get it on the road, it will be brand new and ready to roll. There is nothing quite like driving a car when it is brand new. You can feel it in how the car drives. And you usually get covered by a large warranty from the car manufacturer when you buy a brand new car from them. The warranty won’t be as long for used cars.

Cons

Depreciation is the major downside to be aware of if you do decide to buy a brand new car. This is when the car starts to drop in value as soon as you drive off the forecourt. There is no getting away from this factor. You can look after the car in order to minimise the impact of depreciation. But the car is still going to drop significantly in value compared to what you paid for it when it was brand new.

CarBuyingMethod2

Photo Source

Buying from a Private Seller Online

Pros

Buying cars online is becoming more popular every year. These tend to be bought from private sellers who are trying to get rid of their car. And they are often listed on auction websites. This gives people like you the chance to bid on the car. As long as you know your limits, this can be a good way to buy a car. And you can often pick up some very good deals by buying in this way.

Cons

Buying a car online is risky though. If you haven’t seen the car up close and in person before buying, the risk is even greater. When you haven’t had a chance to assess, there could be hidden faults that the seller is not telling you about. To solve this issue, you should make it clear that you won’t pay for the car until you’ve looked at it and made sure it’s in good condition.

CarBuyingMethod3

Photo Source

Leasing a New Car

Pros

When you lease a car, you get to drive it away and use it as if it was yours. In return, you make regular payments that are agreed in advance. This has a number of benefits. For a start, because the car is not yours, all the repairs and services are paid for by the company that you’re leasing it from. You will also be able to upgrade the car to a better and newer one as soon as the lease ends.

Cons

Not actually owning the car does come with some downsides that you should know about that. For example, the mileage is often capped. This means that you can’t use the car as much as you might if the car actually belonged to you. For many people, this won’t be much of a problem. But many people don’t like the idea of having to carefully watch how many miles they’ve been driving.

CarBuyingMethod4

Photo Source

Hire Purchase Agreement

Pros

With a hire purchase agreement, you pay 10% of the value of the car up front. And the rest of the car’s cost is paid in monthly installments, with interest added on top. When you have finished paying, the car is yours. The dealer does have to make contributions to repair costs up until the car has been completely paid for by you. Which means you could save some money.

Cons

But the car won’t technically be yours until you have paid for it in full. In that regard, the hire purchase agreement works in a similar way to your mortgage. For as long as you owe money to the bank, the house in not yours. And the same will apply to your car. That means that they could repossess it if you fail to make the repayments on time, which is not exactly ideal.

CarBuyingMethod5

Photo Source

Buying at Auction

Pros

Buying cars at auction is something that not many people tend to do. And there are reasons for that. The cars that end up here tend to be in poor condition. And that means that they are cheap to buy. But if you’re looking for a car to work on and restore, attending these auctions is definitely a good idea. Some of the cars that sell go for incredibly low prices. Just do your research first.

Cons

This is not where you should be looking for your car if you want a car that is going to be in great condition. Many of them won’t even be road worthy, so keep that in mind before you start bidding. Go to moneymagpie.com/save-money/buying-a-car-at-auction to find out more about car auctions.

CarBuyingMethod6

Photo Source

Leave a Reply

Your email address will not be published. Required fields are marked *