New Cars, Leasing, Used Cars

New car buyers who find themselves upside down or owing more than their car is worth should probably consider leasing or putting more of a down payment on their new car purchase. For car buyers who normally change cars every couple of years, leasing can make more sense than repeatedly buying new cars.

In a lease, the customer pays an agreed-upon amount each month to keep the car for a set period of time, usually a couple of years. The amount that the customer pays is based on the amount of value the vehicle will lose during that set time period.

New car leasing works best for customers who are sure they will drive no more than a predetermined number of miles per year and who take good care of their cars. New car lease contracts include penalties for damage to the car and for driving more than the preset number of miles allotted.

Another way to stay on the upside of your car's value is to simply purchase a less expensive car. Used cars can offer a practicle and much less expensive alternative to a new car. Get pre-approved for a used car loan before searching multiple dealers for financing options.

When shopping for a used car, keep your eye firmly on the used car price, and not the monthly payment. There is no point in discussing monthly payments until you've negotiated the lowest possible used car price first.