Theres nothing quite like the feeling of driving a brand-new car.

Its more than the new-car smell.

Its knowing that no one has ever driven it other than maybe a test cruise or two before you.

A couple celebrate while being on a long road trip in their vehicle.

Whether you lease or buy a car, you need insurance. Check out our picks for thebest car insurance companiesof 2022.

But a new car can be expensive, which makes it out of reach for many drivers.

According to Kelley Blue Book, the average new car cost $46,404 in January 2022.

Thats up 13.6% from January 2021.

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In addition to higher prices, youll also be waiting longer to get the car you want.

No Interest Til Almost 2027?

If your family is considering going to one car, now may be the time.

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Dealers are eager for used cars to sell and are paying top dollar.

These are good options if you dont need a replacement car.

Leasing vs. Buying a Car: Whats the Difference?

What Is Leasing?

The dealer retains ownership of the car while you pay a monthly fee to drive it.

Did you know?

In this case, youll have to pay for the residual value of the car.

Thats because the price will be based on the cars residual value when you signed the lease.

And if you didnt drive much because you worked from home, the mileage could be quite low.

Just like with buying, you’re able to negotiate a lease amount.

Here are tips on how tonegotiate a lease deal successfully.

What Is Buying?

If something goes wrong with the vehicle while youre leasing it, repairs will likely be covered under warranty.

Some leases may also offer fully paid maintenance for the duration of the lease.

No Room for Customization

As a lessee, you cant make any modifications to your car.

If you want to personalize your ride, leasing isnt the right route for you.

Mileage Limits

Car leases come with certain limitations, one of which has to do with mileage.

They want your business to continue.

The dealership will provide this information to you.

That includes keeping the interior clean and avoiding exterior damage.

That means more disposable income each month to save or spend on whats important to you.

Youll still likely have a higher interest rate than a borrower with a good credit score, though.

You may also need a bigger down payment when buying a car compared to leasing.

Youll also need to pay interest on the amount youre financing.

Your Warranty Will Run Out

New car warranties only last for a specific term.

After that, itll be up to you to pay for any repairs yourself.

Probably not as good as youd like.

It always seems like an uphill battle to build (and keep) a decent amount in savings.

But what if your car breaks down, or you have a sudden medical bill?

Ask one of these companies to help…