First-Time Car Buyer’s Guide: Tips and Tools
Want to buy your first car but don’t know where to start? Follow these tips to set yourself up for success.
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If you’re in the market for a new car, you may be debating whether to buy or lease. It’s a big decision. After buying a house, a new car is the second biggest purchase most people will ever make.
To help you through this milestone, here are the pros and cons of leasing vs buying a car:
Pros: | Cons: |
No or low down payment | Excess mileage penalties |
Usually covered by warranty | Fees for excessive wear and tear |
Lower monthly payments | Early lease termination fees |
No upfront sales tax fees | Generally higher insurance premiums |
No depreciation concerns | Monthly payments |
Summary: If you like always driving the latest models or don’t have the credit or money to buy a new car, leasing may be a smart option.
Pros: | Cons: |
Eventual ownership of car | Unpredictable resale value |
No mileage limits | Higher monthly car loan payments |
Ability to sell car anytime | Post warranty maintenance expenses |
Freedom to customize/modify | Depreciates over time |
Generally lower insurance costs | Large down payment |
Summary: If you plan to keep your car for a long time, modify it or drive a lot of miles, it makes more sense to buy.
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