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Car Buying 101: Recent Graduate

Car Buying 101: Recent Graduate

[funky beat] Yaritsa: After graduating and
getting my first real job I’ve been thinking about
purchasing or leasing a car for the past three months. I’m a little nervous about it ’cause I don’t want to make
like a rush decision. Um, I want to make sure
that I love what I’m buying and that I’m comfortable. I’d prefer to buy a new car
over a used car just because you’re never sure what you’re
getting with a used car. My budget would be between
$25,000 to $30,000. Jim: I get the whole point
on wanting a new car. One option you might consider,
though, is certified pre-owned. Certified pre-owned means that
that car is a used car. It’s probably either a year to
two years old maximum, usually, and, oh, by that way, it
comes with a full warranty, so let’s just do the example. A typical car comes with
four years, 50,000 miles. What they usually do is tack
on another two years to the warranty and probably take
it all the way to 100,000 miles. Yaritsa: My aunt is big on me
taking out a loan to get a car because she thinks that
leasing is just like renting, that I don’t actually own it. And my boyfriend says
the same thing but I just feel in my heart leasing
would be better (laughs]. Jim: Leases oftentimes can look
really, really attractive due to those low payments, but what I would really do is
just do a side-by-side. Do the example — here’s what this car would
look like if I leased it, and here’s what the options are
if I actually financed it. And then make an
educated choice. Yaritsa: In my neighborhood,
um, it’s off-street parking, so I definitely need a car
that’s easier to fit, um, in between two cars. Jim: You had me at leasing, but
you lost me on parking outside. ‘Cause that’s really
not the best idea if you’re leasing a car. ‘Cause chances are, that
skateboard is gonna skate on by and run into your car [laughs]. Remember, you have
to turn this car in. And it has to be in
pretty good shape because they’re gonna turn around
and want to sell it. And if they think that they have
to really recondition the car, in a dramatic way in any
way, shape or form, you’re probably
gonna get charged for wear and tear on that car. So really think about
how you’re using that car and what condition it’s
gonna be when you turn it in. Just make sure that when
you go into a dealer you’re actually comparing
what would it be if I bought this car outright
versus what a lease would be, because maybe you
have a great trade-in, maybe you have a
big down payment, maybe it would just be a lot
cheaper if you financed it. I’d really do the math.

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