Compare Buying New vs. Leasing vs. Used: Which is a better deal?
Edmunds, the auto analyst, took a look at typical financing terms for buying new, leasing new, and buying used. What they found is that buying used actually does save the consumer money. When making the comparison, Edmunds focused on an average midsized car. Here's what they learned.
Assuming a good credit score, leasing had a lower down payment than buying used, but the flip side of that is there are often fees at the end of the lease that cancel out the savings. Buying new had a down payment that was almost double the used car down payment. We're talking $4,104 up front for the new car in addition to monthly payments.
Monthly used car payments were $301 versus $400 for the new car. It didn't matter that the used car interest rate was higher due to bad credit Austin TX. Furthermore, since the lease payment averaged $291 a month, you could say that there is only a $6-a-month difference between buying a used car and simply renting a new car. Ready to ride? Start your loan application.
The final cost analysis, according to Edmunds, showed that the used car was definitely cheaper. It averaged $20,364 with the owner keeping the car while the lease averaged $23,476 with the owner giving up the car. Buying the car, even at a lower interest rate, came out to $28,104.
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