I ran into this nice website called “Better Money Habits” that has a bunch of education videos to instruct you how to make a better money decisions.
In regard to this blog post, I found the topic of buying or leasing a car very well explained on that website.
Buying a new car versus a used car
The key factors mentioned are:
- Initial price
- Loan and Interest rates
- Insurance rate
- Repair costs
- Fuel efficiency and cost
- Depreciation and car’s value over time
What about leasing?
Key points to consider:
- Monthly lease fee
- Down payment to start the lease
- Buy back price: should you consider keeping the car at the end of the lease
- Total cost of a bought car versus total amount of lease and buy back price
It is almost always that buying the car is cheaper then buy back at the end of the lease, however when leasing you are paying less on a monthly basis.