Saturday, August 16, 2014

Buy or Lease a Car? #PostGradProblems

If you're moving to LA for the summer or post-grad, you're going to need a car. Sure there's rumors of public transportation, but trust me it's incredibly inconvenient and may leave you stranded on the seedy part of Hollywood Blvd in the middle of the night- not the best place to be. On this post we'll give you the low down on your options of buying or leasing a car and that tricky tricky auto insurance you are now responsible for. 


That Buying or Leasing Conundrum 

It's a choice that's up to the individual, of course. However, The Hollywood Intern Diaries is here to make the decision just a bit easier. 

  • Leasing Gets You A New Car: If you want a new car, a lease would likely be your best bet. As a post grad, you likely don't have the money to spend on buying a new car. Plus, with a lease you can have a new car every three years or even every year. With a bought new car, you will be stuck with the car for much much longer. 
  • Leasing= Lower Payments: Unlikley car payments where are you buying the whole car, leasing payments are cheaper. You are only paying for the difference in the car's value now v.s. its value at the end of the lease. That means the longer the lease, the lower the monthly payments. 
  • Leasing Payments Never End: That being said, lease payments NEVER end. Whereas, with a bought car, the payments will initially end. This allows you to save money in the long run (providing the cost of repairs doesn't exceed money saved). 
  • Leasing Means No Cost Repairs: Leases will be under warranty for the entirety of your lease. They will also be new and will likely not require much repair work or trips to the dealer. Bought cars on the other hand, will only be under warranty for about two years or less. Repair trips also become more frequent the older the cars become. 
  • Leasing Restrictions: Leases also have restrictions such as charging you an extra fee if you drive too many miles (a problem in LA). When you own your own car, the world is you're oyster. Who is up for a road trip to Vegas? 

Want to lease? Remember these three things. 
1. "Can't Go Lower" is a lie. Be sure to shop around and get multiple quotes. 
2. "Capitalized Costs" means the amount to be financed. 
3. "Residual value" is a fancy word for the value of your car at the end of the lease. 

If you want to learn more about auto insurance or about that awkward transition to adulthood, look out more of our #PostGradProblems articles. Need a Resume? Check out our new Etsy store and get a new resume instantly. 

1 comments:

  1. If I will be given the chance to but a car, I would pick a luxury car.
    CAR WANT

    ReplyDelete