When you're shopping for a car, it can be tough to choose between buying a vehicle that's new versus buying a vehicle that's used; if you're planning to finance your car, the choice can be even more confusing. The truth is, many shoppers would like to buy a new car, but worry that financing it will be too difficult, so they opt to shop used instead. However, at Ghent, we want to work with all of our customers to provide the best opportunities for financing, even for those whose credit scores are less-than-perfect. If you would like to buy a new car but you aren't sure if it's financially practical, take a look at these examples of alternative financing scenarios to determine whether shopping for a new car makes sense for your lifestyle.
Financing scenario #1: Buying a new car with poor credit
When you're choosing between financing a new car or financing a used car, it's important to note that fewer low-interest deals are available for used cars, so even if your down payment on a new car is more expensive, you may be able to save money long-term with lower interest payments. To prepare for this, especially if you're someone with low credit, be sure to save up money for the larger down payment ahead of time, and also to be aware of your exact credit score before you shop. If you can save the money for a larger down payment, lower interest payments on your new car can help you avoid accruing more debt, and making your payments will actually help you rebuild your credit. At Ghent, we're going to give you a variety of financing plan options, and your job will be to pick a loan that you feel comfortable repaying on time each month. Don't stress about attempting to pay the loan off early if it's too difficult; it's much more important to avoid being delinquent on your monthly installments. Even if you're working your way upward from bankruptcy, rebuilding your credit score over time can be accomplished with an auto loan.
Financing scenario #2: Leasing a new car
Another option for driving a new car rather than a used one is to lease a vehicle. When it comes to saving money, studies show that leasing a new car can actually be a superior route of alternative financing compared even to buying a cheap used car. Many experts agree that opting to lease a car or truck for a span of two to three years makes for a reliable decision financially; deposits on leases are reduced, your payments will be less than a car loan payment, and you typically don't need to worry about repair fees. This is especially important to keep in mind if you're contemplating the idea of purchasing a cheap used car, which may save you money upfront but cost you big when in maintenance expenses. If you're working to decide between purchasing a cheap used car or leasing a new car, take a moment to consider what kind of car or truck you see yourself driving, along with the amount of time and energy you're prepared to put into repairs. If you prefer an inexpensive way to drive the most recent car available, leasing could be the best option for you.
Buying a new car can be an intimidating task; contact Ghent Motors with any more questions you might have about the differences between leasing, buying new or buying a used car. You can always shop our inventory online to get a feel for what we have, then visit us when you're ready to test drive. We look forward to helping you find, and finance, your new car.