Why to say NO to buy a new car?

People all over the world love to wheel their favorite cars in sky rocketing speed. But buying an expensive new car is not an easy deal for everyone. It requires whooping sum of money and common people will find it hard to spend this big amount in one shot. As a result, many people are cancelling their plans to buy a new car, and the concept of lease deals are gaining prominence all over the world. Buying a new car is associated with various disadvantages, and some of the most prominent ones are given below.

Huge sum of amount needed: Buying a used car requires huge sum of money, and normally it will not be affordable for a common man. Most of the new cars will be out of your reach, and you will not be able to purchase it by paying the amount in a single shot. Due to this financial burden, many people are now choosing leased cars instead of new one. A leased car is actually renting a car for a fixed period of time, and you can pay the fixed monthly installments afterwards. This financial liberty and easiness is one of the main reason behind the wide spread popularity of lease deals.

Higher Insurance Premium: This is another reason to say NO to new cars. The insurance premium of a new car will be sky high, and thus your wallet will be damaged to a great extend. It is highly expensive to insure a new car, and it will surely go beyond the limits of a common man. In these times, you can choose lease deals, and the insurance rates for leased cars will be pretty low when compared to buying a new car.

High Depreciation Rate: This is another main disadvantage of buying a used car. Your car will be prone to high depreciation rate from the very next moment you start driving it. The rate of your car will rapidly depreciate within the first year of your ownership, and if you are planning to sell it after one or two years, you will surely incur big losses. This factor plays a crucial role in decreasing the popularity of new cars, and many people are cancelling the decision to buy a new vehicle because of the chances of potential loss. During these times, you can lease a car, and there will be no chances of depreciation. While leasing, you are actually returning back the car, and there will be no hassles of selling. Nowadays, more people prefer lease deals because of its high effectiveness, and they are also getting the satisfaction of driving a new car.

Altogether, we can conclude that buying a new car is not a good decision if you are a person with limited financial back grounds. In many cases, a new car will not satisfy you in all aspects, and when you are going to sell it, you may face huge losses. ‘’So, say YES to lease deals and lead a hassle free life’’