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The monthly lease payments may be much lower than you would pay if you take out a loan for a new car. In fact, the payments may be a lot lower for a much newer model.
It’s recommended you spend no more than about $2,000 upfront when you lease a car. In some cases, it may make sense to put nothing down and roll all of your fee costs into the monthly lease payment.
Before shopping for a car, know how much you can afford. A good rule of thumb is to keep your payment below 10% of your net pay. For example, if your monthly take-home pay is $4,000, your car ...
If at all possible, pay for your car in cash so you can avoid the hefty interest rates — the average interest rate for a new car loan is 6.84%, while the average interest rate for a used car ...
The other option would be to lease instead. If you're not a road-warrior type who drives more than 15,000 miles per year, a lease might be a good way to get a new car you want at a payment that ...
Another rule of thumb says that drivers should spend no more than 15% of their monthly take-home pay on car expenses. So under that guideline, if your net pay is $3,500 a month, it's best to avoid ...
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