Free Thinking - July 2018

Free Thinking - July 2018

July 02, 2018
Share |

Money Tip of the Month

Reviewed your credit cards lately?  Many variables to consider:  annual fee, interest rate, and most importantly – rewards.  Cash back, travel rewards, what do you want?  Check out Nerd Wallet for an overview of the best credit cards for your needs.

Current Events

It’s the middle of summer.  Have you been on vacation yet?  Why not!  Finish reading this and then get planning.  Time’s a wasting.  Get out of town and recharge.

Should You Lease or Buy that New Car?

This question has come up several times recently.  The best long-term financial answer is to buy a lightly used car and drive it into the ground.  That’s not always realistic (nor fun).  The second-best answer is to buy a new car after using the internet for price discovery and your excellent negotiating skills to get the best deal possible.

There are some scenarios where leasing can make sense.  Two recent situations come to mind.  In the first, a family needed a car for a high school-aged driver who was likely going to attend college out of state.  Instead of buying a used car with questionable maintenance history or a new car, they leased a new car for 30 months.  Once the teen graduated, they turned the car in and walked away.  Why did it make sense for this family?  For a fixed cost, the teen was able drive a reliable car with the latest safety features (important in the milieu that is Atlanta traffic).  It gave the parents peace of mind and was easier than buying and selling a car in a short time frame.

Another client leased a car when their previous car (a nice European sedan) was about to need more work than it was worth (per a very reputable mechanic).  This client liked to keep cars for a decade but didn’t really have a car in mind they loved.  They had also just purchased a big house (and furnishings) and were experiencing checkbook fatigue.  I encouraged them to lease a car for the short term, let the technology advance (which it did rapidly), and then find a car for the next decade.  This spring they completed their two year lease and purchased a new car with all the new bells and whistles, including safety features that weren’t available two years ago.



Feel free to call or email us any time!


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.