College is another word for a new world of stress. You are living on your own, mom and dad no longer pay your bills, you have tuition to pay, rent and classes to pass. According to the Average Estimated Undergraduate Budgets 2017-18, the average college student can expect to pay anywhere between about $9,000-$25,000 per semester on tuition and rent is an entirely different story.
It almost seems as if life cannot get any worse and before you know it, you have at least $30,000 left to pay off your car loan.The big question is; how do you afford it all? There is a way to budget your expenses effectively so that you are not behind on any payments.
Aside from tuition and rent, let’s take a look at where else you need to spend your money given that you are no longer on parental support.
Here is an annual budget for a typical college student:
Clothing:
$450.00-$750.00 annual expense
Food:
$3,500-$7,500 annual expense
Gas/Car insurance:
$1,000.00-$5,000.00 annual expense
Cell Phone:
$150.00-$800.00 annual expense
Books and School Supplies:
$600.00-$1,200.00 annual expense
Entertainment:
$1,300.00 annual expense
Electronics:
$200.00-$1,200.00 annual expense
On-Campus activities:
$400.00-$1,200.00 annual expense
Travel:
$300.00-$1,000.00 annual expense
Owning a car on top of all of the expenses you already could be toxic to your bank account. However, there is a way out of your loans, but there is still a price to pay. Rather than pulling your hair out to pay off your $30,000 loan, try leasing your car.
When you lease your car you only have to pay a monthly fee and for a term of two to three years. Once the term is complete, you can then switch out your vehicle for another one. First, let’s decide why you should lease and the pros and cons that come with it.
Could Leasing Save your Bank Account?
It is important to determine whether or not for sure if college students should lease or buy a car. Much like your apartment rent, you have to pay your monthly payment on your car by a certain date. Unless you want to see your precious ride get towed off back to the car dealership, you might want to do your homework and research the different prices that your local car dealership offers.
Most college students are encouraged to establish a budget and determine what they can realistically afford with the assistance of an auto calculator. This tool can help them find a wide price range of cars that will fit into their budget.
According to USAA certified financial planner practitioner, JJ Montanaro, “Making consistent on-time payments is just as critical for young adults to build a strong credit history as it is to stay within their means.”
He even stated, “I always encourage people to shoot for roughly 10% of their gross income, to be at that level or less when it comes to car payments and folks will look at that number and say ‘gosh, that takes a lot of the cars off my list’ but it will certainly keep them out of trouble.”
There are many other ways car leasing can help you take the stress off of car payments. It has more flexibility and provides more options rather than having to feel as if you are locked into a long-term commitment to the car that you may tire of in the next two years.
Like another major decision, there are pros and cons to leasing a car.
Pros:
- Drive a car during its prime years
- Monthly payment
- Wider variety
- Receive latest versions with the most updated technology
- All maintenance, oil changes and repairs are all included
- No stress about trading or selling car after lease
Cons
- Restricted to certain number of miles
- Additional fees if you exceed the the mile limit
- Responsibility of monthly payments
- Any damages or changes made to the car can lead to a hefty fine
You Graduated, Now What Do You Do With Your Car?
Graduating college is another major step towards another financial challenge which is more of a reason to lease your car versus buying it. After you receive that glowing diploma in your hands, it is the signal for your parents to completely cut your finances unless you make the decision to move back home.
Here are some things to consider for after you graduate:
- Save your money while working at the local coffee shop
- Make applying for long-term careers your second job
- Come up with a budget plan
- Figure out where you want to live
- If you move up north, buy a larger car with a four-wheel drive so that you can navigate through snow and ice.
- Research car dealerships of the area you are moving to.
- Always read the contracts before signing a lease and determine if it is the right fit for you.
- Plan how long you will be living in your new location before signing a car lease.
- Be mindful of traffic laws and speed limits of the area you move to.
- When you reach your new destination, be extra mindful about prices because they are different in all regions across the United States.
Always have a plan of action no matter where you move to or what car you decide to lease. Find the plan that helps save you money while finding the ideal solution.
Leasing Makes Dollars & Sense
It just so happens that car leasing does not have to be viewed as another hair-pulling and expensive burden on top of student loans, new apartment and insurance. Instead, car leasing offers plenty of mercy to recent college graduates.
Most auto-manufacturers not only want to offer discounts to college graduates, but they also want to grow their customer networks. This method allows college graduates to lease they’re through a preferred financing program, which helps students qualify for the purchases according to their educational background. Since college graduates do not have a lot on their record, this helps auto-manufacturers determine their eligibility. If you are a college student and you plan to lease a car for an awesome price, you might want to be mindful of that GPA.
There are so many different types of brands that customers can choose from and in fact there are at least three brands that are suitable to college graduates and millennials.
2018 Dodge Challenger
This awesome ride is ideal for young college graduates who are looking for something sporty, fast, but also safe. Not only would you look pretty good driving this vehicle, but you would have a blast driving all your friends around. The 2018 Dodge Challenger is only $149 per month which is a lot less expensive than most cars you would lease. According to the review, the 2018 Dodge Challenger received a score of 8.4 out of 10, which is pretty impressive for the price per month. In addition to that, it has a 13-19 mpg for city driving and a 21-30 mpg for highway driving. You definitely won’t find yourself constantly filling up for gas tank every day and you can seat up to four passengers. Therefore, you might want to go ahead and plan that fun night out on the town with your friends.
2018 BMW 1X
If you are looking for something more luxurious to drive around and flaunt, be sure to check out the 2018 BMW 1X. Not only are you driving the dream car, but are only looking at paying only $529 per month along with comfy seats, plenty of space and extra cargo capacity. That sounds pretty sweet if you are planning that summer road trip. Also, the mpg for this ride ranges from 22-23 for city driving and 31-32 for highway driving which means you are only having to fill up your tank once a week.
2018 GMC Sierra 1500
Let’s take this trip down to the south and check out the 2018 GMC Sierra. If you are looking for a vehicle to haul equipment, keep you comfortable during trips out into the Rocky Mountains or even to carry your dog around, then you might want to look into buying yourself a truck. Not only would you have to pay $559 per month, but you also get a V6 engine which can provide you with excellent mileage.
It even comes with two available V8 engines which can help with the acceleration levels and higher towing capacities. However, with the V6 engine you get to save on gasoline and have a horsepower of 235 and 305 pound-feet of torque. If you decide to use the V8 you have the option of using a 5.3 liter that will boost you up to 355 horsepower and 383 pound-feet of torque or the 6.2 liter that will give you 420 horsepower and 460 pound-feet of torque.
Therefore, you won’t have any issues getting to places on time. It is also great if you want to just spend the afternoon speeding down the highway and blasting your favorite Lee Brice album.
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This is a featured post by site supporter CarLease
Photos provided by author.