Hi everyone,
As the title says I am looking for some advice on whether to buy a new car (financed), used car, or lease. I don't know much about either options so any info is helpful.
Context: I currently drive a used 2006 Ford Fusion that I bought 5 years for for $10K. Long story short - it's costing me more to repair (and has been) than it's worth and I'm starting to get concerned about my safety due to a few recent issues.
I live in Toronto, have no debt, make $80K a year at a salaried job, and my monthly hard costs expenses are about $1,600 (rent, phone, internet, insurance). The rest I put in savings/invest and and/or for "fun" money. I have about $50K in savings but also have a hard time parting with my money lol, though I know this is something worth investing in.
I use my car mostly to get around the city and surrounding areas (to visit family and friends), day/weekend trips, and general regular travel. I love having a car and the freedom that comes with it, so not having one isn't really an option for me.
Would love to know everyone's POV on which option I should go with. I would definitely like something nicer than my current car, but not looking for anything too fancy. I am leaning towards something Asian (Honda, Toyota, Hyundai, etc.) as I find them to be generally reliable and more affordable. Here is what I know about each option and my current thinking based on my little knowledge.
Buying new: would likely finance, though I don't love the idea of monthly payments, and the car would be mine when I eventually pay it off. This is an attractive idea, but I also don't know where I will be living in 3-4 years time when I imagine I would pay it off. That is my main apprehension.
Buying used: I chatted with my friend who works at a dealership and is generally a big car guy, and from what I understand there aren't a ton of great used cars out there (not sure why) and he suggested it would be smarter financially to invest in a new car should I go the new or used route.
Leasing: basically renting a vehicle with smaller monthly payments, and I'd be able to get a nicer. I like this idea bc it gives me flexibility in terms of my future, but I also don't fully understand the ins and outs of leasing.
Looking forward to hearing your thoughts and happy to provide more context should it help. Many thanks in advance!
Submitted October 29, 2021 at 09:21AM by natlegz https://ift.tt/3EvQBYS
