It\u2019s the start of a new school year, and you\u2019ve discovered that your son or daughter needs their own car.<\/p>\n
But, you\u2019re not sure if you should buy new or used, or whether buying even makes sense \u2013 your neighbor mentioned that leasing might be an attractive option.<\/p>\n
In the past, the easy answer was often to buy a used car at a reasonable cost, perhaps $5,000. However, because the car market and government subsidies have changed, the cost of leasing may be surprisingly affordable.<\/p>\n
As an example, in August, a new Volkswagen eGolf could be leased for 36 months with $0 down and only the first payment of $300 due at signing. This car qualified for the Oregon clean energy rebate of $2,500. Additionally, for a family of four living in the Portland Metro area with household income under $100,000, an additional $2,500 was available.<\/p>\n
Let\u2019s look at the math in a bit more detail:<\/p>\n
While insurance would be higher for the new car compared to a used vehicle, maintenance and other costs (like licensing and smog tests) should be much lower.<\/p>\n
It appears that a similar leasing opportunity is available this month for a BMW i3.<\/p>\n
To determine whether purchase or leasing is the best option, you should investigate the availability of government subsidies for purchasing or leasing a new \u201cgreen\u201d vehicle. It might well result in a big savings, and a happy young driver.<\/p>\n