Never Ignore the Signs of a Car Problem

Buying Or Leasing A Car For Your College Student

12 April 2017 by Dennis Fletcher

As the parent of a college student, one of your proudest moments may be watching them open the thick envelopes from various universities around the country who would like your son or daughter to attend their school. However, that pride can often be tempered by the realization that if they opt to attend a university far from home, providing them with new transportation may soon be necessary. Therefore, when you know your son or daughter will need a new car for college, it's a good idea to consider the following information about buying versus leasing a car.  

Considerations When Buying A Car

It's important to note that when you are buying a car for your college student, you'll usually have higher payments than if you choose to lease it. That is because the full cost of the car, its optional features, and any applicable interest charges or other fees need to be paid within the time period of the loan. The obvious benefit is, of course, that at the end of the lease period, the car is yours to do with as you please and the equity on it can provide a nice down-payment for the next car you buy. Almost seven out of ten drivers buy cars instead of leasing them, so buying is a viable choice for many people.

Determining When It Is Better To Buy Instead Of Leasing A New Car

If your hope that the vehicle you are gifting your child with now is the last one you will need to purchase for them, buying a car is a good idea. Since it is not unusual to finance a car over four or five years, it is often possible to have the car paid off around the time that your child graduates from college.

Buying a new car may also be a helpful choice if you know that he or she will be putting many miles on the car over the next few years. That is due to the penalties at the end of the lease term and larger monthly payments for high mileage on leased vehicles, as discussed below. 

In conclusion, many parents opt to obtain new cars for their adult children who are pursuing their education in order for their kids to be as safe and mobile as possible throughout their time at college. The information shared above will help you to determine whether leasing or buying a new car is the best choice. 

Share

Search