As a recent college graduate, there are many things that you will have to consider. First, you will want to look for a job, but in order to do so effectively, you will need reliable transportation. As you will have to begin paying back student loans pretty quickly, you want to make sure that you get a vehicle that you can afford. However, affordability does not mean that the vehicle will not be dependable. In an ideal world, you will get a new vehicle that has a monthly payment that you can afford. In order to have this, it is important to know about the different ways to get a new vehicle. Your two options are to either finance or lease. For new college graduates, leasing is the best option for you.
Lower Monthly Payment
The first reason that leasing is the best option is because your monthly payment will be lower. Also, this monthly payment will be affordable even if you get a brand new car. When you make the decision to lease instead of finance, you are only paying for the depreciation of the vehicle. For example, if the vehicle costs a total of $20,000 and it will be worth $10,000 at the end of the leasing agreement, you only have to pay the $10,000 depreciation difference. However, if you choose to finance the vehicle, you will be paying the entire $20,000 plus interest. Also, when you lease, you will not have to make a down payment as large as you would have to make when financing. Therefore, if you are a recent college graduate and wish to have a lower monthly vehicle payment, you should consider a lease.
As a recent college graduate, your main focus will be to land a great job. However, if you do not have a dependable car, it will be difficult to get the job that you desire. Fortunately, when you decide to lease, you can get a brand new car that has an affordable monthly payment. With a new car, you will not have to worry about being sold a lemon that only works for a few weeks, and you will not have to worry about not having the best safety and technological features. Additionally, with most leases, your car will be under warranty until your lease is complete. This allows you to know that if there are any mechanical failures, you will be able to take your car to the dealership to get it repaired.
No Trade In
Finally, when you are done with your lease, you will not have to trade the vehicle back to the dealership for a new car. With a lease, you can simply walk away when your leasing agreement is finished. This allows new college graduates the opportunity to start a new lease, and in many cases, the monthly payment will be close to the same. In other words, you will be able to get a new car approximately every three years, and this allows you to always have a dependable car. This is extremely important if your new job requires you to drive any clients or co-workers in your car. You will want a vehicle that is new and dependable.
A vehicle is definitely something that you will need once you are done with college. However, you do not have to pay more than you can afford. With a lease, you can get the vehicle that you desire, but it will come with an affordable price. When you get to the dealership for your new car, be sure to let the salesman know that you plan to lease your vehicle.