Watching Your Wallet: Leasing a car during the pandemic
LANSING, Mich. (WILX) - If you’re in the market for a new car, financial experts say you might want to consider leasing over buying during the COVID-19 pandemic.
Buying a car is a huge commitment but there are several reasons why leasing might be a good idea for you in these current economic conditions.
First, leasing requires little to no money down according to our partners at the financial website Nerdwallet. Also, leases have shorter commitment periods. People are worried about job security over the next couple of years and there are affordable two or three-year leases agreements available.
Interest rates are at a nearly seven-year low. You can even find no-interest loans which will significantly reduce your monthly payment.
You should look into all of those manufacturer incentives, they’re out there. Check the manufacturer’s website for these kinds of offers. Lenders can adjust the monthly payment, length of the lease and down payment and apply the cash incentives several different ways to lower your payment. You have no idea what that car will be worth in three years, plus leasing can also protect you from depreciation.
Make sure you know exactly how much a car costs and shop multiple dealerships. Also, make sure you understand how annual mileage plays in a lease. 12,000 is the standard, but if you are working from home and driving less, you could get a lower payment with a 10,000-mile yearly limit.
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