When leasing a car is the more frugal option

If you need a car, the most frugal option is to buy one that’s 2 to 3 years old, pay cash and drive it until the wheels fall off.

The least frugal option traditionally has been leasing, where you make monthly payments to drive a car but don’t own it. You’re paying for the vehicle during its most expensive period — cars lose more than half their value on average in the first three years — and you have nothing to show for your payments after the lease ends.

Few people opt for the frugal way, however, and car buying has changed enough that leasing may no longer be the costliest option. In my latest for the Associated Press, why, in some situations, leasing could be the most sensible option.

Wednesday’s need-to-know money news

debt-freeToday’s top story: How to perform a debt autopsy. Also in the news: How to choose between leasing and financing a new vehicle, spring break travel tips, and how to tell if a credit card has a good interest rate.

If You Really Want to Kill Off Your Debt, Do a Debt Autopsy
Not nearly as scary as it sounds.

How to Choose Between Vehicle Leasing and Financing
Deciding what’s best for you.

12 Major Travel Sites Reveal How to Save on Top Spring Break Destinations
Spend less on travel and more on fun.

How to Tell If a Credit Card Has a Good Interest Rate
Do your research.

Monday’s need-to-know money news

Zemanta Related Posts ThumbnailToday’s top story: Money tips for new college grads. Also in the news: Lying to yourself about finances, the pros and cons of auto financing, and ranking the 50 states for retirement.

Money tips college graduates can use
Welcome to the real world!

3 Financial Fibs You Tell Yourself
Paying off debt and building your savings aren’t mutually exclusive.

Auto Financing vs. Paying in Cash: What Are the Costs and Benefits?
Evaluating present vs future costs.

Report ranks best, worst states for retirement
Where does your state rank?

What You Should (and Shouldn’t) Overlook During an Open House
You can always change the paint.