Deciding between leasing a new car and buying a new car has confined many people, especially when there are options like a used car dealership in Calgary. Each choice has its benefits and drawbacks that come with it. Let’s find out this a bit further to assist you in making the right call. 

Advantages of Leasing A Car

The leasing of the car has been very popularly followed by most people, and there are a lot of benefits of doing this: 

  • Lower Monthly Payments: Leasing usually causes the person to make lower monthly payments than had purchased a new car. This happens because you are only paying for the car’s loss of value over the lease period, not the full original price. 
  • Access to Newer Models: On lease rides, you have an opportunity to drive the car of your dreams every few years. So you are always part of a modern world, driving new models equipped with the latest features and technologies without the long-term commitment of ownership. 
  • Warranty Coverage: Many leasing terms go hand in hand with the warranty periods set by the car manufacturer, which means that there is usually a warranty for big repairs, which means fewer unexpected costs.

Disadvantages of Leasing A Car

However, leasing isn’t without its drawbacks:

  • Continuous Payment: You are not the owner of the vehicle, thus you will always have monthly payments and will not accumulate equity in the car.
  • Mileage Limits on Leased Cars: Leases tend to come with mileage limitations. Breaking these limits can cost extra, which could be a problem for people with long trips to and from work or for travellers.    
  • No Customization: Leased automobiles must be delivered to the manufacturer in the same shape as when they left the factory, which prevents you from customizing or altering the automobile.

Advantages of Buying a Used Car

Purchasing a used car presents its own set of benefits:

  • Ownership and Equity: After you have paid off the loan, the car is yours. There are no more monthly payments, and you can keep or sell the vehicle as you want.    
  • Cost-effective: Used cars are generally cheaper than new ones, which means you will have a lower loan amount and possibly shorter loan terms.   
  • Resale Value of Leased vs Bought Cars: When you purchase a car, particularly from a reliable used car dealership, you have the chance to get some of your money back from it when you resell it, depending on the condition of the car and the market demand.  By contrast, leasing doesn’t offer this benefit since you have to return the car at the end of the lease term.

Disadvantages of Buying a Used Car

There are also considerations to keep in mind when buying used:

  • Potential for Higher Maintenance Costs: Older vehicles can need more repairs than newer ones, and, based on the car’s age and mileage, it might not be covered by the warranty.  
  • Limited Features:  Used cars may not have the cutting-edge technology and safety features that come with the newer models.   
  • Unknown History: There are some issues or past damages that are not revealed in the vehicle history reports, and this may adversely impact the car’s performance and its durability. 

Best Way to Finance a Used Car

Finance a used car requires careful consideration.

  • Loan Pre-Approval: This will help you know your budget and what interest rates you stand to qualify for if you are planning to take a loan.
  • Shorter Loan Terms: It is possible to avoid paying a lot of interest by getting shorter loan terms, even if this means having more monthly payments.
  • Down Payment: It can also help you reduce the loan amount, and you may be able to secure better interest rates if you can pay a large down payment.
  • Credit Score: A good credit score can help you secure better loan terms. It is recommended that you obtain and, if needed, enhance your credit report before applying for the loan.

Making the Right Choice with Double L Motors

For anyone interested in buying a car, you should also check out the used car options available at  Double L Motors. Being a renowned used car dealership close to the Calgary region, they provide a huge collection of vehicles to choose from for both personal and commercial use. You should also consider their commitment to customer satisfaction and their no hidden fees policy, hence making them a dealer of used cars in Calgary.

Visit Double L Motors today and start looking through our inventory and get one step closer to driving a car that suits your lifestyle.