Make an Appointment

Should You Buy Used, New, or Lease?

July 23, 2020

Cars in a dealership lot.Pros And Cons To Paying For Your Next Car

Looking for your next car can be exciting! Before getting behind the wheel for a test drive, or even beginning your search, knowing the varying factors of purchasing one is helpful to keep in mind, as that can greatly influence your financial position.

When it's time to purchase your next vehicle, there are generally three options: buy used, buy new, or lease. Here are some pros and cons for each.

Used Cars


  • Used cars are generally less expensive up-front and they have the added benefit of not drastically depreciating when they leave the lot. 

  • Buying a used car, offers a pretty good-sized savings percentage compared to purchasing that same car brand new. Therefore, it may be easier to afford a higher class of car than you normally could have. 

  • Also, car insurance rates and registration renewals are typically lower for used cars. This can save you hundreds of dollars, or more, over the life of the car.


  • While today’s cars are much more efficient and can go longer between scheduled maintenance visits, if you choose to buy used, there are some additional costs to consider. For example, you’ll want to have the car checked out by a trusted mechanic to determine when maintenance work or repairs would be necessary.

  • You may have to pay additional money to have the car certified.

  • Depending on the age of the vehicle, you may possess it for less time, which means spending more on a another vehicle sooner.

New Cars


  • Buying a new car may present you with more financing options from a seller, as well as new-car incentives such as cash rebates and great interest rates. You may also be able to spend less than the first-market price after negotiations, incentives and rebates. 

  • New cars are also likely to provide the latest in tech features for performance, safety and comfort. 

  • A brand new car offers peace of mind without the need to take it to a mechanic before buying. If issues arise, most warranties will cover the cost of repairs for the first few years.


  • New cars are expensive and you may have to put a large amount down up front. They also depreciate as soon as you leave the lot. In some cases, the value of the car drops as much as 20 percent right when you pull away! That means a $25,000 car will lose $5,000 within the first few minutes of ownership.

Leasing A Car


  • When you lease, you don’t pay the full purchase price of the car, rather, you pay the depreciation of the car. This means if you lease a $25,000 car for 3 years, and the anticipated value of the car at the end of the 3 years is $15,000, you only make payments on that $10,000 difference. If you had purchased the car, you would make payments on $25,000.

  • Leasing is also often available with no money down or a much smaller amount than when buying the car outright.

  • A major benefit of leasing is that you get to drive a brand new car every few years. This means the latest in safety and technology.


  • A drawback of leasing, is that the money you're spending isn’t investing in an asset, it’s simply spending money. Like renting instead of buying, you are not purchasing any equity in an asset you can later sell.

  • Other considerations are mileage fees and potential damage to the vehicle. If the car is damaged or you drive it over the mileage limit, you may end up with hefty fees.

  • Leasing often costs more than buying in the long run, as you typically drive a purchased car for longer than 3 years.

Drive Smarter

When buying your next car, consider the various financial choices, your driving habits, and your personal preferences of owning a car. Before deciding, visit our Car Loan page to learn how we can help you get on the road with a car that's right for you. Start the application process below.

Apply Now


If you’re not ready to apply for a car loan, and have questions, we are here to help. Call 315-735-8571 to talk about your options or make an appointment with one of our friendly and knowledgeable representatives today. Simply click on the button below, select the “Apply for a Loan” service from the menu and choose the “Auto/Recreational” option.

Article adapted from Banzai.

Posted in: Car Loan




​charity “best “debt “savings 50/30/20 529 about account account” adults advice Amanda L. King Memorial Fund American Cancer Society American Heart Association American Red Cross Amy DeMetri animals Anita’s Steven Swan Humane Society Anita’s Stevens Swan Humane Society atv financing atv loan Auto auto loan back bad credit bank Banzai Berowski Better U Program bike Blog Blog Posts Blogs boat loans borrow Branch breach budget Budgeting business camper cancer Capitol Civic Center Car car loan Car Loans Card Cell Phones For Soldiers Challenge charity Check checking checks Child Tax Credit children Children’s Miracle Network Hospitals Children's Museum Choice Investments Christmas Chuck club College Comets Community compounding consolidation” conventional Corporate Credit Credit Card credit cards credit union Dance the Night Away debt debt consolidation plan deposit destinations dividend donation down payment Dream earnings education Entrepreneurs Equifax equity expenses experienced investing experienced investor FDIC FHA FHA loan Fical Finance Financial financial literacy program financing Firley Moran First First Source Federal Credit Union for Games Genesis Genesis Group gifts giving Giving Tuesday Go Blue Go Red Go Red for Women Good Good News Center Goodison-Bick Greiner Group guide Halloween HCCC Health healthy pet loan Heart HELOC herkimer Herkimer County Humane Society holiday Holiday loan holidays home home buying Home Equity Line of Credit Home Equity Loan Home Equity Loans Home Improvement Loan hot tub house House of the Good Shepherd Hug Humane Society of Rome Indoor installation interest invest Investment investments IRA JD Arrante Jessie Joseph R. Carucci Legacy Awards Julie Keller KIDS Kid's Oneida kitchen remodel kristy learn lien lienhouse Lilli living smarter LMV loan Loans Local long-term savings manage management Marketing Maxam medical Mel member members mentoring Michael Mike missing money money management Money Market Money Market Account Mortgage Mortgages Motorcycle Financing Motorcycle Loan MVCC National Center for Missing & Exploited Children National Credit Union Administration (NCUA) National Credit Union Youth Month NCMEC NCUA Neumann New New Hartford new investors nole North Utica of One Oneida online online safety Only order checks Orsomarso overdraft Pamela paperwork Paralympics Parsons patient pay bills payments personal loans pet care pet financing pet surgery Pete pets plan planning Posts Power presents President/CEO programs protection purchase QR Questions rates Recreational Loan recreational loans Red reduce relief renovation Requirements Resolutions resort resorts retirement rewards ride Rome Run RV RV & Camper Loan Ryan Misencik Safety saving savings savings account savings” Schools Schumer security Sen. service settlement” Sherman Sinnott Education Center ski resort ski trips sled snowboard snowmobile snowmobile trails social media Source South South Utica spending spots SSHS Staff Stevens-Swan Humane Society students Sue Summer system Tammy Cieslak Tanya Taxes teachers Team Team First Source teens Term Share Certificate testimonial the The American Cancer Society The Genesis Group Tiny's Grill Tips Tom travel treatment treats Tricia trip TV Union Unite United United Way Up Upstate Caring Partners Utica Utica Blue Sox Utica Children’s Museum Utica Comets Utica Zoo VA vacation vacation financing vacation loan Valley Health Services Video Visa volunteer Waggle Walk Walk-A-Thon Way Wear Wellness Wells Wendy Why We Ride wig Wiggle wild Winner winners Winter withdrawal women Women’s Employment & Resource Center Year's York You You’re Young Young Entrepreneurs Academy Young Scholars Program YWCA