Nowadays, you have to ask yourself not only what kind of car you want to drive, but also what kind of financing best suits your needs. The following post should help you find the right solution for your next car.
Buying the car
"If you drive your new car from the dealership garage, it's already devalued by half its price."
It's not that bad, but the drop in value of a car is huge. And the biggest cost annually for a new car is its depreciation. Buying a car is particularly interesting if you want to drive your car for the next 5-10 years, because only then is it written off to the extent that the high initial investment had been worth it.
Since the car is yours, you can do whatever you want with it, pimp it and tune it. Overall, buying a car is as flexible as it is inflexible. You can do anything with your car, but maintenance and resale are often very tedious and time-consuming. The purchase price is not the only important element to consider, because a car is not just about its looks. You need a liability insurance, optionally a fully comprehensive insurance, pay for papers, get license plates and much more.
Pros
✅ The car is your property, meaning no minimum running time or km restrictions
✅ Car lovers and vintage car fans get their money's worth when buying a car
✅ With a new car, you’re the one who determines its equipment
Cons
❌ High capital expenditure and associated opportunity costs
❌ You have to take care of everything yourself (insurance, taxes, repurchase, MFK, repairs)
❌ Costs are difficult to calculate, they are underestimated by about 50% (read more here)
Car loan
With a car loan, just as with a car purchase, the car belongs to you after the contract is signed. The advantages and disadvantages of buying a car are therefore the same. But you have to remember that you have to go into debt with your bank to buy a car. The repayment of the car loan is connected with interest. It is important to consider whether you really want to take out a bank loan for your car.
Pros
✅ The car is your property
✅ Car lovers / vintage car fans get their money's worth when buying a car.
✅ With a new car, you’re the one who determines its equipment
Cons
❌ You are in debt and pay monthly interest
❌ You have to take care of everything yourself (insurance, taxes, repurchase, MFK, repairs)
❌ Difficult to calculate costs, these are underestimated by approx. 50% (read more here)
Leasing
With this type of financing, you cannot call the car your own, because it belongs to the bank, which makes it available to you to rent. It is important to know that the amount of the lease is not a reimbursement of the car. You pay for the use and the loss in value of the car and, in addition, you pay interest for the financing by the bank. After the contract period has expired, however, it is possible to buy back the car at its residual value. With this form of financing, the dealer, the bank and you are in a triangular relationship. In addition to the financing of the car, the leasing also involves additional costs for comprehensive insurance, taxes, tires and maintenance. You can read more about leasing in our post: What to think about before signing a leasing contract.
Pros
✅ Low capital expenditure (usually a small down payment)
✅ A new car of your choice
✅ With a new car, you often determine its equipment
Cons
❌ Long commitment. Returning the car early is difficult and expensive
❌ You have to take care of everything yourself (insurance, taxes, repurchase, MFK, repairs)
❌ Difficult to calculate costs, these are underestimated by approx. 50% (read more here)
Car subscription
According to Comparis, the car subscription is the cheapest way to get a new car. Depending on the provider, there are many options for customizing the subscription to best meet your own needs. Since the subscription includes everything (except petrol), you save a lot of time, as you do not have to worry about anything. In addition, you have full transparency regarding the costs and can easily calculate them.
Pros
✅ Minimum capital expenditure (no down payment)
✅ Lower fixed monthly price with full cost transparency thanks to all-inclusive service
✅ Flexible, individual conditions
✅ Reliable car, without danger of hidden defects
Cons
❌ Fans of exotic models or vintage cars will not be completely satisfied
❌ No possibility to configure the car equipment yourself
❌ Usually you cannot get your licence plates back
Conclusion
Each of the mentioned models has its advantages and disadvantages. Car enthusiasts who want to choose every detail themselves and who like to personalize their car will probably be more satisfied with a purchase (new or used). With a leasing, you can reduce the capital requirement, while choosing the equipment you want. This choice is recommended if you are willing to accept the low flexibility and the total costs are difficult to calculate. The car subscription is suitable for people who want to drive a modern, well-equipped car at a fair price and do not want to worry about all the details, such as registration, garage bills or depreciation.
Deals with down payment
With our down payment deals, you benefit from an even lower car subscription price. Discover various brands and receive your non-binding offer!
