After college, the world is officially yours. It’s time to create an independent life for yourself and it usually starts off with getting a car to call yours. But of the thousands of cars and options out there, and the thought of “what can I afford?”.
New or Used Car?
When shopping for a car, the majority of graduates can’t wait to see the latest and greatest for the year. Sometimes they run into the case of seeing the greatest but it happens to be an older model or a used model. Newer cars have the upgrades and technology these grads are interested in, but so do used or older models. Also, test driving a new model versus and older or used model can end up surprising the grad in how similar the ride is. A used car also does tend to cost less and depreciates less over time.
Leasing or Buying?
So you have figured out whether to purchase a new or used car. The next step is to either lease it or buy it. Off the bat, leasing a car only works for new cars only unless you can find a specialty dealership which allows leasing of a used car. When you lease a car, you only pay for the value of the car in the time frame you will have it, not the total value. There are also security deposits and fees that you wouldn’t see so much if buying a car. Leasing, however, does give you the option of driving a new car every few years.
Then you have the option of buying a car, not leasing. When you buy a car, you pay for the entire value of the car with other fees and you can either pay it cash or finance it with an auto loan. You will find those monthly loan payments are always higher in a car you bought than in a leased car. Buying a car means you plan on having this car for a while, over 5 years give or take.
Budgeting For Your Car
So you have chosen your new or used car and chose to either lease it or buy it, now it’s time to think of your budget and which car would be more suitable for your monthly payments. Here are a few things to consider into your car budget:
- Loan Payments
- Maintenance and Repairs
Buying a car can be stressful and time-consuming. Luckily, Swapalease.com here to make it easier. It is the largest online lease transfer marketplace. For more information on finding the best car lease deals or to learn how you can have a successful car lease trade, visit Swapalease.com or contact them at 866-SWAPNOW.