Sep
10

New or Used? Buy or Lease? Many Decisions to Make When Looking for a Car

Author // NPR Car Talk
Posted in // Auto loan calculator, Ford explorer, Ford f150 manhattan ks

Car leasing manhattan ks

Cars are part of life for people in the U.S. In 2014, nearly 90% of people reported owning a car, and even for those who don’t own their own car, the vast majority of them have drivers licenses and drive at least occasionally. There is a lot to know about owning a car and taking care of it. Here are some of the most important considerations.

When you are thinking about getting a car, you have to decide whether you want to get a new car or a used one and whether you will buy or lease. There are pros and cons to the choices, and you have to make sure you fully understand the options.

The big advantage to buying a used car is that it is cheaper. Cars depreciate tremendously in their first year, losing 25-30% of their value. This makes buying a used car a good deal in many cases, because you can get a relatively new car for much less than it would cost to buy brand new. For example, a new Hyundai Sonata could cost you well over $20,000, depending on options, but one that is two or three years old might only cost you around $15,000. One thing to keep in mind when looking at used cars for sale is their background. The average car is owned by three people in its lifetime, and you don’t know how those people treated the car when they owned it or what happened to it. Getting all the background information you can is key when buying a used vehicle.

If you do decide to get a new car, you have to decide whether you want to buy or lease. The big advantage to leasing is that you get a new car with a much lower payment. For example, if you bought a Hyundai Sonata that cost $25,000 and financed the whole amount, you’d pay about $450 per month for five years with a 3% interest rate. On the other hand, you might be able to get a car lease for that same Hyundai Sonata for three years for less than $300 a month. Of course, leasing has drawbacks. You usually are limited to no more than 12,000 miles a year and face stiff penalties if you exceed that amount. You also have to keep the car in very good condition or you could face penalties when your lease is up.

Whether to buy new or used or whether to lease a car instead of buying are all personal decisions. You have to decide which one best fits your personal and financial situation. Before making a decision, it’s good to do your research and make sure you have all the facts about each option.

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