Getting a new car? How exciting! But you’ve got an important decision in front of you. What colour? CD Player? Four wheel drive? Manual or automatic? New or used?

Sitting down and analyzing just how much new, used, or leased cars will cost you is important. It changes from person to person too, it depends juts how much you plan to drive the car and where you intend to use it.

Here’s an in-depth look at some of the costs behind purchasing a new car.

Buying New

  • Warranty: most manufacturers offer bumper-to-bumper warranties that cover several years of a cars life or a certain number of kilometers, covering most repairs, parts and labor.
  • Deals: most dealerships offer several amazing deals during the year, from employee pricing, 0% financing, and other incentives

Leasing vs. Financing

  • If you don’t want to pay for a new car in cash, there is the option of leasing or financing
  • Leasing comes with lower monthly payment, but you will never own the vehicle
  • Leased vehicles also come with yearly mileage restrictions, which may not be high enough for drivers who have a long daily commute.
  • Financing allows you to make payments and eventually own the vehicle at the end of the term

Other considerations

  • Extra administration fees: some dealers tack on extra administration
  • Depreciation: As soon as a vehicle drives off the lot, it losts it’s value!

Advantages of buying used

  • Lower initial cost
  • Favourable insurance rates

Have any tips for purchasing a vehicle?
Let us know in the comments below!