With the advent of CARFAX and other similar vehicle history websites, used cars can be checked before purchase for adverse information like salvage titles, accidents, etc which may lower the resale price of an owned vehicle.\u00a0 With reported accidents or salvage titles, some banks won\u2019t even finance a vehicle.<\/p>\n
Thus, if you purchase a vehicle and later have an accident with an insurance claim, police report, or reported body shop collision repair, your value may be much lower than the normal book value, thereby increasing, even after repairs, the total cost of ownership during your period of use.<\/p>\n
By contrast, if you lease the same vehicle and have the same accident and again do the same repairs, you can still return the vehicle to the lessor without extra charges.\u00a0 The vehicle is still worth less, but the lower value only affects the owner\/lessor (the bank, leasing company, or manufacturer).<\/p>\n
Thus \u201cpotential\u201d diminished value is another good reason to lease instead of buy.<\/p>\n
PS \u2013 If you need a Carfax report either to see what your current vehicle looks like prior to sale or what your potential next used car looks like, to buy or to lease, call me.\u00a0 If I do it, it\u2019s free \u2013 If you do it, it\u2019s $35.<\/p>\n","protected":false},"excerpt":{"rendered":"
Potential diminished value makes leasing an even stronger choice than it was in the past. Continue reading