One undeniable fact is, buying a brand-new car is one of the most expensive purchases you will ever make. Currently, the price of a brand-new vehicle is more than $34,000. Aside from the purchase price, new car owners have to bear the costs of maintenance, interest payments on loans, insurance, and other similar expenses.
Since new cars are increasingly expensive, people are looking for alternatives.
Below are five alternatives to buying a new car:
#1 Get a used car
This is the most common alternative to purchasing a new car. On average, a car loses around $9,000 after the first year due to depreciation. So, if you buy a year or two old car, it can save you lots of money.
Purchasing a slightly used car is just the same as getting a new one; you remain the owner. One interesting fact is, used cars have a wider variety to choose from, and they can save you a significant amount of money.
The downside is, because it’s a used car, you might have to spend more on maintenance. Also, used cars have a less attractive range of financing options. This is because loans for used cars have higher interest rates than what new car dealerships can offer.
#2 Get a lease
Instead of buying a new car, you can lease one. The leasing concept allows you to drive for a set period of time without being the actual owner. In this type of arrangement, you do not have to sell the car at the end of your lease. All you need to do is take it to the dealership you got the car from. This saves you the stress of selling.
You pay for the first month in a lease, followed by monthly payments and other fees described within the lease agreement.
Leasing becomes financially beneficial when you start paying monthly. Lease payments are cheaper than loans because you will return the car instead of paying for full ownership. Leases are great because they allow you to keep the car and drive for long periods.
Also, a lease agreement mandates the manufacturer or dealer to handle all the maintenance work. There is either a yearly or monthly mileage limit for most leases, which is not beneficial for people who travel a lot with cars.
#3 Use a short-term car renting app
Even though car subscription services are still new to people, they provide a useful and superb alternative to purchasing a new car. With car subscription services, you make a monthly all-inclusive payment without interest charges or deposits to drive a manufacturer’s car.
Due to the absence of interest payments, the fee is lower than the monthly car payment. Note that the range of car subscription prices ranges from a few dollars monthly to around $2000 for top car brands.
In most instances, car subscription services will allow you to switch cars regularly, making it more flexible than conventional leasing options.
Car subscription services offer flat fees, so it provides a more convenient option than purchasing a brand-new car for people who are not at ease with bargaining prices. These services might be quite challenging to use, mainly if you are trading one vehicle for another.
A car subscription model provides increased flexibility. The downside is, some of the car subscription service fees are high. It is important to note that because car subscription services are new, they are not yet available everywhere.
If you like the idea of driving any car for short periods of time, a car subscription service is the best option.
#4 Use ridesharing services
Ridesharing services like Lyft and Uber are suitable ways to avoid buying a car. The advantage Ridesharing has over other options is, someone will be driving for you. The time you are supposed to spend driving would be used to perform other productive tasks while dealing with road challenges like traffic.
If you stay in an urban area where your workplace is not far from home, ridesharing will be quite affordable than when you have your car. This is because you will not spend on insurance, fuel, and other expenses.
Another advantage is, the cost of maintenance is not your problem because the car is not for you.
The major problem with ridesharing services is, you will need to wait for a while after booking a ride before the driver comes to pick you.
#5 Use car sharing services
The car-sharing model is the bridge between the traditional rental model and ridesharing. Car sharing services are situated at vantage parking spots in the cities where they allow users to rent cars in the short-term.
If you want to use the car-sharing model, all you need to do is sign-in on your car-sharing application and book a car. This model allows you to book a car at any time of the day and collect it at an accessible location.
The car-sharing model is a user-friendly one that still requires some input on your part. With this convenient model, you do not have to bother about maintenance and insurance fees. If your workplace is close to home, the car-sharing model is great for you.
Unlike other modes where direct or long-term ownership is involved, booking and picking up a vehicle might be inconvenient, mainly if you are not close to the pickup location.
These options mentioned above are part of the feasible alternatives to buying a brand-new car. Using any of these alternatives will help you save money and evade the inconvenience of having a new car.
It would be best for you to do your research and see which one works for you. Any of these models might be expensive if you do not go about them the right way.