Leasing is essentially a long-term rental with the driver essentially paying for the cost of the vehicle’s depreciation over the period of the lease. After purchasing a new car, you are responsible for paying for it in full. Most people choose a financing option to pay for a new vehicle.
“The perks of buying new are no one else has driven it, so you don't have to worry about how the car was treated,” says Ryan Piercy, sales manager at highly rated Bob Rohrman’s Indy Honda in Indianapolis. “Everything is new and maintained. There won't be any maintenance for a while. They're also more fuel efficient and have better safety technology as well.”
Some of the benefits of buying a new car, auto experts say, include:
A full warranty from the manufacturer with the option of adding an extended warranty from the dealership, Heard said. The industry standard that most manufacturers offer is a bumper-to-bumper three-year, 36,000-mile factory warranty. Some follow that with a two-year extended powertrain warranty, which covers the engine, transmission and drivetrain.Multiple options available at the driver's fingertips, including more choices in color, accessories and technology.
Buyers can add additional features, like a DVD player or an onboard GPS.Newer cars are often more fuel efficient, which saves you money at the pump.More incentives, such as lower interest rates and possible rebates or dealer cash.
Typically, buyers of new cars are offered stronger financing options and cash-back incentives compared to those in the market for a used car. Many automotive dealerships will offer zero-percent financing over a period of time, such as five years, for example.You'll be the car's first driver, meaning:
“You'll be more comfortable with the car’s history,” Heard said. “As the initial owner, you'll know everything that has been done.”Fewer mechanical issues, at least early on.
“If you buy a new car, you really only have the payment, gas and insurance to deal with in most cases,” Heard said. “The budgeting can be easier. Depending on what pre-owned car you buy, you may have to have a fund at the ready for things like tires, brakes or other maintenance issues.”