Apr 26, 2017

In the first few weeks of the Trump presidency, we have seen a whirlwind of changes, and there’s still more to come… a lot more.

One of the biggest impacts Donald Trump may have as the President of the United States is in the field of production. With his business background, people are expecting Trump to make big changes in business sectors either directly through regulations or indirectly through taxes.

Trump and automobiles

One of the most important of these sectors, particularly when it comes to the daily buying power of the American people is the automobile industry. If you want to buy a car this year, you need to look both ways.

On one hand, you should look for any major changes in the bigger picture and then create an estimate of how it may have an impact on you. Then, of course, comes the big decision of choosing between buying and leasing.

The bigger picture

The present situation of the US automobile sector is pretty good to say the very least. The industry is back on the track of progress and is recovering from the effects of the 2008 financial crisis at a rapid pace, but will the progress continue under President Trump? That is the question.  

The shift in production

In his inaugural address to the nation, Trump spoke about America first and American first. This can have a large-scale impact on the American automobile industry. A lot of the country’s automobile sector depends on international production to ensure a steady stream of profit by cutting costs.

If Trump forces the companies to move production back to America, it may be good for creating jobs. If it leads to an increase in the cost of the vehicles and decrease in the levels of available credit, then it will have a massive impact on the buyers.

Let’s not dwell on what may or may not happen. Let’s instead move on to some practical concerns.

Buying vs. leasing

When it comes to automobiles, the decision to buy or lease doesn’t just depend on external factors. Regardless of the policy changes Trump may introduce, it’s your personal choice that matters. Whether you should buy or lease depends on what you want from the vehicle.

So let’s do a comparative analysis here:

When to buy…

  • You want to have absolute ownership of the vehicle.
  • You want to sell or trade-in your vehicle whenever you want to buy a new one.
  • You don’t want to worry about any kind of wear and tear the vehicle may suffer.
  • You want the ability to modify or customize your vehicle as much as you like.

When to lease…

  • You don’t want to own the vehicle permanently. You only need to use it for a particular duration.
  • You don’t want to pay a fortune on the upfront costs.
  • You want to pay lower monthly payments.
  • You don’t want the future value of the vehicle to affect you financially.

Thanks for Signing up for ConsumerHacks™

You are now a certified Hacker!

Make sure you add our email to your address book: