To Buy or To Lease a Car
Hi all,
I found this article and thought it was interesting
Credit goes to www.savingdimes.com (lots of helpful tips on there BTW). Anyone else have other tips to offer? I was looking into a different car but not sure whether to buy or lease.
-T
To Buy or To Lease
First off, you should consider whether you want to buy or lease a car.
Buy a car if:
It's expected that you will drive the car for at least five or more years. Once you pay off your auto loan, you will own the car and can stop writing regular monthly checks.
You'll be putting 18,000 to 20,000 miles on it in each year. If you go over a certain mileage with a car that you lease you may be charged for it.
Your goal is to save money in the long run, and you are only looking at your cash costs. In theory, you could lease a car and invest the difference between the low lease payments and the higher payments and you'd still owe on an auto loan. For that matter, leasing would be cheaper. But if you don't invest the difference, then buying is cheaper.
You want to purchase a used car. Check for one that's "manufacturer-certified" and is in top shape.
Lease a car if:
You want a car that's over your budget of what you would be able to spend on monthly payments. Monthly payments on leases are usually lower than on comparable auto loans. Also, leases don't require that you have a large down payment.
You want to drive a new car every two to three years and aren't bothered by having permanent monthly payments and going through the process of paperwork time and time again once you purchase a car.
Once you have a car, you should regularly give your car a checkup that consists of the following:
Change your oil regularly. This is the most important aspect of keeping your engine in good running condition. You'll eliminate so many problems that could occur if you don't change your oil on a regular basis.
Keep your car clean by washing it regularly. Wax it as well but not as often as you should wash your car, this will keep the exterior of the car shiny and free from corrosion.
Fix any minor problems as soon as you can. Minor problems can quickly become serious problems an are much more expensive to repair.
Use original parts only
I found this article and thought it was interesting
Credit goes to www.savingdimes.com (lots of helpful tips on there BTW). Anyone else have other tips to offer? I was looking into a different car but not sure whether to buy or lease.-T
To Buy or To Lease
First off, you should consider whether you want to buy or lease a car.
Buy a car if:
It's expected that you will drive the car for at least five or more years. Once you pay off your auto loan, you will own the car and can stop writing regular monthly checks.
You'll be putting 18,000 to 20,000 miles on it in each year. If you go over a certain mileage with a car that you lease you may be charged for it.
Your goal is to save money in the long run, and you are only looking at your cash costs. In theory, you could lease a car and invest the difference between the low lease payments and the higher payments and you'd still owe on an auto loan. For that matter, leasing would be cheaper. But if you don't invest the difference, then buying is cheaper.
You want to purchase a used car. Check for one that's "manufacturer-certified" and is in top shape.
Lease a car if:
You want a car that's over your budget of what you would be able to spend on monthly payments. Monthly payments on leases are usually lower than on comparable auto loans. Also, leases don't require that you have a large down payment.
You want to drive a new car every two to three years and aren't bothered by having permanent monthly payments and going through the process of paperwork time and time again once you purchase a car.
Once you have a car, you should regularly give your car a checkup that consists of the following:
Change your oil regularly. This is the most important aspect of keeping your engine in good running condition. You'll eliminate so many problems that could occur if you don't change your oil on a regular basis.
Keep your car clean by washing it regularly. Wax it as well but not as often as you should wash your car, this will keep the exterior of the car shiny and free from corrosion.
Fix any minor problems as soon as you can. Minor problems can quickly become serious problems an are much more expensive to repair.
Use original parts only