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Buying or Leasing a New Car


Are you looking to buy a new car any time soon? Buying new cars in Cambridge can be a smooth process with the right tools, research, and knowledge. Before you walk into a car dealership, it’s best to do your homework on a few important aspects. While it doesn’t hurt to shop around and look at different places, it’s always good to have a few details ironed out before you sign on the dotted line. Here is a quick comprehensive guide to help you buy your new car.

What are you as a person, looking for?

If you’re the type of person that is looking for a solid, reliable car to use for a very long time…then you might steer toward buying a car.

If you don’t want to settle on a specific car right away because you’re not sure if you want to commit to a particular car or you like to change things up every couple of years, you can lease new cars in Cambridge for a period of time and decide to either buy it for its residual value at the end of your leasing agreement, or opt to sign a new leasing agreement on a different vehicle.

How do you plan to finance it?

When it comes to buying new cars in Cambridge, a loan from a bank and proof that you can pay off the monthly loan payments (collateral), is required. It always helps to be pre-approved by a bank or credit union in order to make your trip to the dealership all the more simpler if you decide to go this route.

A good rule of thumb is to keep the loan-period short within the four-year period. You can always choose to lease later as sometimes, certain car dealerships can surprise you and give you a better rate! (wink)

If you decide to lease a car, it’s best to shop around for rates because an interest rate can make all the difference to your car payments. Buying a new car is really exciting but the last thing you want is to be blindsided into an interest rate that adds $1000 / mo. to your payments. Be nice to your future self and make sure your interest rate is both reasonable and feasible.

Pros and cons of buying and leasing

Some buying pros include: your costs when buying new cars in Cambridge (think: a down payment, monthly loan, registration fees, taxes etc.) will go toward owning your car, you have full control on whether you want to keep it or sell it for cash value, there’s no set mileage limits, you will build equity on your next car once you pay off your loan and since you own it, you can customize it in anyway you please.

Some buying cons include: higher monthly loan payments, you are responsible for selling or trading the car if you decide that you want to change things up, wear and tear on the vehicle is going to reflect on your resale or re-trade value and depreciation values are higher.

Some leasing pros include: lower monthly payments, it offers flexibility — if you decide you want to try out a new car, leasing won’t affect you financially in the future (as long as you have a good interest rate!), and you can simply pay your end-lease fees and decide to buy or lease a new car. This is a great option if you want to try out a specific model before buying it as it gives you some more time to make a decision.

Some leasing cons include: your upfront costs (think: a security deposit, first month’s payment, a down payment, taxes etc.) are much more costly than when buying new cars in Cambridge, an early-termination of a lease can be highly costly if you change your mind throughout your lease, there’s a limit on the kilometers that can be driven during the leasing period, it’s not really yours so you can’t really customize it and if there’s any residual damage it is up to you to pay it and fix it so it can remain sellable.

If you’re searching for new cars in Cambridge or if  Xtreme Motors has a model that you’re interested in please get in contact with us about our rates. We specialize in financing rates for new cars in Cambridge and will work with you to find a desirable interest rate for your new car purchase.

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