Rent or buy a new car
Buying a vehicle with a conventional car loan is quite simple: You ask for a loan from a bank, a credit union or another credit institution and make monthly payments for a few years. A part of each payment corresponds to the interests and the rest to the principal. The higher the interest rate, the higher the payment. As you return the principal, you accumulate equity until, at the end of the loan, the car is all yours.
As car prices increase (now they cost on average more than $ 12, 000) and buyers are beginning to demand the latest safety features that are available only in newer cars, renting or leasing a vehicle has become a more popular alternative to buying. With a rental, buyers make a monthly payment to drive a new car for a specified period. That payment is typically less...