You’ve got the need for speed – or, at the very least, you have the need to get from point a to point b! So, what are your options, what services are available that can put you in the driver’s seat of your dream car?
Unlike fifty years ago, when buying was the only viable way to drive a car long-term, there are now actually three fantastic ways to park a new car in your garage. Whatever your budget, whatever your long-term needs or level of commitment-aversion, there is an option for you.
The three options are as follows: buying (of course), leasing and car subscribing, the latter of which might still be unknown to many readers. Let’s take a look.
What it is: buying a car means that you own the car, and that it is yours to drive and resell. Often, this option entails coughing up a down payment, going through a credit check and setting up financing through the bank where you make monthly payments. It’s still the most popular way to get a car, and the only option that gives the consumer true ownership, but it has its drawbacks.
- Pros: You own the car, and can sell it later to recoup some of your initial investment.
- Cons: It’s probably the most expensive of the options, and because you own the car, you eat the entirety of its depreciation, as opposed to the other two options.
What it is: leasing a car means that you own access to a car, for a period of time known as the lease term. During the lease term, it’s your car, and when the lease is finished you can either buy out the remaining value of the vehicle, return the car and walk away, or enter into a new car lease –check this out for more information on how a lease contract works.
- Pros: You pay low monthly payments compared to owning, and you only pay for the amount of depreciation that occurs during your lease term (meaning that if you lease a used car, you pay quite a low amount). Also, you can drive a new car every couple of years.
- Cons:You don’t own the car, and as such aren’t making an investment into something resalable.
Car Subscription Services
What it is: The new kid on the block, car subscribing is a service not unlike other subscriptions, where you pay a monthly price for access to wide range of products – in this case, cars. You sign up via an app, then choose your plan and vehicle, with the flexibility to swap, renew or cancel on a monthly basis.
- Pros: It is flexible, and, for those who don’t need a car year-round, it’s the most economical option, since they can opt in and out as needed. Car subscriptions also allow you to drive a great number of different cars.
- Cons: Like leasing, you don’t own the car. But if you aren’t hung up on the notion of ownership, there really aren’t many cons attached to this option.
There you have it – three fantastic ways to start driving the car of your dreams. Is ownership important to you, or do you favour flexibility? Do you mind paying a down payment, or do you want to just download an app and drive? Whatever your personality, there’s an option for you.