When your car is getting to the end of its road, and it’s time to look into a new (or new to you) car, there are a few ways you can proceed. Depending on your financial and familial situation, you will need to make a few decisions about how you are going to procure your new vehicle, and where to start your search. With many options available to you, here are a few helpful tips on where to start and what to consider when searching for your next vehicle.

Purchase or Lease?

The main consideration when looking for your next vehicle is how you will be paying for it. You can either purchase your vehicle outright, if you have the money available or saved up, you can purchase the vehicle through financing and make monthly payments over a term loan, or you can consider a novated lease or standard lease. Leasing can be a great option for a shorter term if you are unsure about the type of car you are looking for. Depending on your financial situation you will make the decision based on what works best for you. The method of purchase will dictate what type of vehicle you will be able to buy, based on price range and approved financing.

New or Used?

Buying a new or used vehicle will affect many factors of your purchase. Depending on the age of the vehicle, you may not be able to get financing for it, as vehicles that have reached a certain age are often not available to purchase via financing. If you are purchasing a vehicle with cash, then you will be able to buy older cars, often for a lower price tag, but this can also come with some complications. New vehicles will have a warranty and you can purchase additional maintenance packages, which means you will have to put less money out of pocket should something go wrong with your vehicle. While newer vehicles have higher price tags, you are better protected in the event of mechanical issues.

The best way to decide what vehicle to purchase is to do some research and thoroughly check your financial situation. While you may want the newest vehicle with all the bells and whistles, you should ensure that you will be able to make all the payments in full and on time. You also need to consider your monthly insurance costs on the vehicle you want to purchase. So before signing on the dotted line, make sure that you are making the right decision for your finances. 

With a lease, you may be able to sign a shorter term than a financing purchase, allowing you to change out vehicles every year or two and with an outright cash purchase you will be able to avoid any monthly payments, but be wholly responsible for the vehicle maintenance. So no matter what you choose, just make sure that it works for you. A new car is super exciting and with a few simple steps, you will be on your way to enjoying your new ride, be it new, used, purchased, or leased.