cars
Welcome

When it comes to cars, there are so many options, that sometimes it can be overwhelming to find the right combination of what you want and what you need. What you want to do, is make sure you do your research first. Find out what type of car will fit your needs the best. You don’t want to buy a large SUV if you only do a little bit of city driving, with a maximum of one other passenger. That just wouldn’t make sense. So always do research before making a big financial purchase.

If you examine your needs rather than wants, you will quickly discover what the right car is for you. Take a moment to think about what you use your car for. How many people do you need to transport? What type of driving do you do most often? How long is your commute? Is it important that your next vehicle get good gas mileage? In too many cases people choose a car for its styling or because it is a trendy favorite. If you do, you might either exceed your budget or have to go car shopping again soon. Let your needs, not your wants, drive your decision.

Regardless of whether you decide to buy or lease your next car, establishing a realistic monthly payment that fits into your budget is crucial. How much should this be? A rule of thumb is your total monthly car payments shouldn't exceed 20 percent of your monthly take-home pay.

A lease requires little or no money up front and offers lower monthly payments. But when the lease ends, you are left without a car and will need to replace it. Buying a car is more expensive initially and the monthly payments are higher. But at the end of the loan, you will own a car you can still drive or sell.

There are some advantages of Leasing. You can drive a more expensive car for less money. You can drive a new car every few years. There are no trade-in hassles at the end of the lease.

And there are also some advantages of buying. When interest rates are low, it makes more financial sense to own a car rather than lease it. There are no unexpected mileage penalties for increased driving. There's more flexibility; you can sell the car whenever you want.

You will need to look into both buying and leasing options. See which one is right for your situation. Not everyone will lease, and not everyone will buy. Everybody’s personal and financial situations are different, therefore, each person will find more option more attractive than the other.