Buying a car? Should you buy new, buy used, or lease?
Why Buying a New Car Makes More Sense than Buying Used
Many experts will tell you buying cars used is best for your long-term financial health. Here’s why they’re (mostly) wrong…
You’ve thought about it and ruled out walking, public transportation, Ubers, and even renting a car only when you must. None of that works for you.
You’re getting a car of your own and that’s that.
Your options are to (a) buy new, (b) buy used, or (c) lease new. Which makes the most sense?
According to Ben Le Fort, buying a new car is a really bad idea. He calculates that if you make the median income, financing, depreciation, gas, maintenance, and insurance cost 25% of your after-tax income.
However, that’s only true for the first year of ownership. Here are the true costs if you’re not silly enough (or make enough millions) to replace your car each year.
Which Cars Should We Analyze?
To calculate the full cost of ownership, let’s first decide which cars we’ll look at. According to US News and World Report, the best non-luxury vehicles for the money in 2019 are:
