Car Leasing 101 - Warranty and Repairs - Disadvantages of Buying a Car

When considering buying a new or used car versus leasing a car, consider these disadvantages to purchasing a new vehicle.

Warranties and Repairs

Yes, new cars come with warranties that cover your wear a tear of the vehicle, but what happens once this warranty expires? Assuming you did not consider purchasing an extended warranty (define: extended warranty); maintenance and repair costs on a vehicle are an important consideration when buying a car. In the first two to three years of a new car's life it has fewer problems and is typically covered by a comprehensive bumper-to-bumper warranty. Though once the warranty expires, costs can add up. This is when you may see more used vehicles on the market – people selling their vehicle after the warranty expires.

With an expired warranty, the consumer is stuck with paying out of pocket for the repairs and maintenance. While it’s expected you’ll pay regardless of wear parts over time, such as tires, replacing lights, brake pads, etc. that wear down over time, any major repairs can be costly – especially if you go back to the dealership for those repair parts.

When buying a new or used car, always consider the warranty life value and if any extended warranties are available. Warranties will save you much stress of costly payments on repairs that results from faulty parts or miss-use of the vehicle.

Part VII: Car Depreciation