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buying Should I Buy or Lease My Next Car?

17:06  12 december  2017
17:06  12 december  2017 Source:   credit.com

Unshackled: Best Ways To Break A Car Lease

  Unshackled: Best Ways To Break A Car Lease Leasing a car has its advantages over buying and financing one, but it’s far more difficult and costly to get out of the contract if you no longer want, or can afford, the vehicle.It’s no secret that consumers have embraced new-car leasing in recent years as a way to make what’s become a staggeringly expensive purchase for many households more affordable. According to Experian Automotive, leasing currently accounts for 31% of all new-vehicle transactions, with the average lease payment ($412) being 18% less than the average new-car loan payment ($504), though the latter figure is skewed a bit by the large percentage of luxury cars that are typically leased.

One of the most common questions I am asked as a financial planner is “ should I lease or buy my car ?”. Leasing commercials on the radio make it sound like leasing a car is the only cheap, intelligent choice. However, it really depends on how you define “cheap.”.

Buying vs. Leasing . Deciding whether to buy or lease your next vehicle ultimately comes down to what you’re comfortable with and what you’re looking to gain. The team at Mercedes-Benz of Newton is happy to help you as you make your decision between buying and leasing your next vehicle.

a man standing in front of a car: road-trip-credit-card© Credit.com Blog road-trip-credit-card One of the most common questions I am asked as a financial planner is "should I lease or buy my car?" Leasing commercials on the radio make it sound like leasing a car is the only cheap, intelligent choice. However, it really depends on how you define "cheap." If it means a lower monthly payment, then leasing is usually cheaper. If it means what you pay long term, though, leasing is usually not the best option.

What's the Process of Buying a Car?

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Buying a car is a relatively straightforward process. Essentially, you negotiate the price of the car at the dealership and you secure financing. After providing a down payment, you'd finance the entire remaining value of the car, usually through a loan from a bank or credit union. You would then make payments that include both principal and interest for a specified period of time. Once your contract is complete, and the loan or other financing is paid off, you'd own the car outright.

Should I Buy an End-of-Summer New Car?

  Should I Buy an End-of-Summer New Car? Automotive advertising accelerates to a turbo-like frenzy in late summer as dealerships need to make room for the new model year vehicles. Big rebates and 0 percent financing offers can sure temp t shoppers to make a quick deal for a 2017 car. But this season is complicated because used car prices are unusually high due to hurricanes that wiped out an estimated 1 million vehicles and because there's an oversupply of new cars available.

It's difficult to know whether you should lease or buy your next car . Take our quiz to discover which will suit you the best. Alternatively, when you buy a car you’ll benefit from ownership, which means the car will be 100% yours once you’ve paid the installments or outright payment.

Deciding what to do with your leased car ? Get some help figuring out whether you should buy it or return it back to the dealer. The bottom line is actually pretty simple: if you like your leased car and wouldn’t mind owning it, and the residual value is less than the market value, then go ahead and buy it.

At that point, you could decide to keep it or sell it. If you sold it, you'd have to negotiate the sale to get the price you want. One disadvantage of owning the car is that thanks to regular wear and tear and other factors, you have no guarantee of what the car will be worth at the end of the financing period.

How is Leasing Different from Buying?

Leasing is a bit more complicated, but it's basically just another method of financing a car. The difference is you aren't financing the entire car—just the use of the car during the first few years of the car's life. The payments you make would still consist of principal and interest, but only for the portion of the car's life you'd be using up.

The biggest difference is that unlike buying a car, you don't own anything once a lease is complete—and if you still needed a vehicle, you'd have to acquire another one. Typically, you can purchase the car for a pre-set price (known as the residual value) once the lease term is over, or you can give the car back to the leasing company and decide to either purchase or lease another vehicle.

Buy, Lease, or Subscribe? Automakers Offer New Approaches to Car Ownership

  Buy, Lease, or Subscribe? Automakers Offer New Approaches to Car Ownership Volvo and others announce flexible plansVolvo and other automakers are betting that consumers are ready for a new, more flexible way of owning a car.

In your situation, driving 25- to 30,000 miles per year, you definitely need to buy . You'd get hit hard with excess mileage charges. Most leases are for 12,000 miles or less per year.

buying a car , leasing a car , depreciating asset, driving for business, should you buy or lease your next car ?, difference between buying and leasing . Buying a car is usually cheaper in the long run, but it offers less flexibility and typically higher monthly payments. Here are five questions to help you

Do You Have to Pay Extra Fees to Lease a Car?

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Many advertised leases also require a down payment. If you're short on cash, you can skip the down payment, but your monthly payment would be higher because you'd be financing more of the car. Also, keep in mind that you're still responsible for the condition and mileage of the cars you lease. When you turn the car back in, if it isn't in good condition or if you've driven more miles than your lease allows (around 12,000 miles per year), then you'll have to pay extra.

2019 Toyota RAV4: A New Lease on Life for the New Sales King

  2019 Toyota RAV4: A New Lease on Life for the New Sales King 2019 Toyota RAV4: A New Lease on Life for the New Sales King What It Is: A redesigned version of the Toyota RAV4 crossover, which in 2017 not only held the honor of being Toyota’s top-selling vehicle in the United States but also beat out all other SUVs on the charts and came in as the best-selling non-truck vehicle in the entire country. Even more amazingly, the RAV4 that racked up those impressive numbers has been on the market in its current form since 2013.

Leasing often gets a bad rap. And no wonder: Its confusing terms sound like fodder for a course in high finance, and dealers have been known to slip bad About 20% of new- car transactions are leases , but we’re convinced that more people should consider leasing . Carmakers have shifted incentives from

If you’re buying a car , you’ll typically need to hand over at least 10% of the price up front to get the best interest rate on a loan. Do you always rush to buy the next -version smart phone or HDTV? Crave the upgraded model of everything? Leasing might be your best bet, says Maloney, since you only have to

When Is It Better to Lease Rather Than Buy?

Before you decide to lease or buy, you'll also need to determine how many miles you drive per year and how long you like to keep your cars. If you are a high mileage driver (say, more than 15,000 miles per year) or you like to keep your cars for three years or more, you are most likely better off purchasing the car. If you don't drive much and you prefer driving new cars, then leasing may be a better option for you.

Regardless of whether you lease or buy, you'll need good credit to qualify for a low interest rate. So before you shop for a car, see where you stand: check your credit score for free at Credit.com.

This article originally appeared on Credit.com.

Best Cars for Uber and Lyft Drivers .
Drivers for ride-share services such as Uber and Lyft can put as much as 1,000 miles a week on their cars, says Harry Campbell, a ride-share consultant at therideshareguy.com. For that kind of he avy-duty driving, the things many people want in a car—reliablility, fuel efficiency, and safety—become critical. CR talked with Campbell and studied ride-share-driver forums to find out what specific elements Uber and Lyft drivers are looking for in a vehicle. Then we looked at the results of our Annual Auto Survey to find out which affordable used cars are tops in those three areas.

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