All of us need a place to live, and most of us need a car to help us get around. When we’re young, we tend to rent an apartment or house, and we may also use a car that our parents helped us buy. As we leave college and become full-fledged adults, we start to realize there are other options out there. By the time we hit thirty, owning may seem like a better idea. It may seem like the more “adult” option. Is it always, though? It may make sense to rent a home and buy a car, or vice versa. The right answer for you depends on a series of factors, many of which can and do change with time.
Buying a car outright or through a payment plan is the best option for a majority of drivers, but leasing also works well for people in certain circumstances. The two biggest advantages to leasing might be the lower monthly payments and the small down payment. The fixed time period can also be a draw for people who lose interest in a car quickly. It’s easier to return a vehicle at the end of 24 or 36 months than it is to go through all the hassle of trading it in. If that sounds like you, then take a look at some of the deals on Best Car Deals Now or a similar site.
Who shouldn’t lease a car? Well, people with a bad credit score generally aren’t great candidates. In fact, you need excellent credit to even think about leasing in most cases. It may sound counterintuitive, but it’s typically easier to obtain a car loan with less-than-perfect credit than it is lease a vehicle. Leasing also isn’t a good idea for people who plan on driving the wheels off their car, since lease agreements charge you on a per-mile basis for going above a certain amount of mileage. If you’ve got small kids, buying is better as well, because those wear-and-tear fees can really add up with a lease.
A big part of the American dream involves owning a home. We like to imagine raising a family and settling down on our very own parcel of land, regardless of if that land is on a small lot in the city or an expansive one in the country. Despite that, rental rates in America are the highest they’ve been since the 1960s. Blame that on a combination of factors, including residual fear from the housing crisis that began in 2007. People want to buy, but inventories are low and prices tend to be high.
That doesn’t mean owning a house is a bad idea, but it means you should make sure that you’re getting into the market at the right time. Talk to a home financial adviser about what you want, and then talk about what you can get on the current market. You may find that the two are closer than you thought. If not, try to figure out when buying a home might be more feasible, and make a timeline if possible. A dream deferred can still be realized, especially if you make a plan and commit to getting your finances in better order
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