Long story short: a great friend of mine who’s currently a graduate student in NYC is moving to the burbs of NJ to do doctoral research for diabetes. She is a sweet heart and her research will be cutting edge and has the potential to save many lives.
She knows how to drive but living in NYC, has never owned a car. She has good credit but only makes about $35k and has a few thousand in backup reserves. Her income as a PhD candidate will also be about $35k. She doesn’t care about what kind of car and is expecting to get used, but given used car prices and used car loan interest rates, I think she may be better off lease hacking.
She will only be driving short distances, so mileage isn’t an issue, and she would be willing to go electric. What do you think is her best bet? Chevy Bolt, Nissan Versa, Toyota Corolla??? Thanks in advance!
Here in the Chicago area there is a dealer advertising a manual Kia Forte - no money down, $229 per month, 10k a year for 36 months.
That’s the lowest I have seen in a long time. Look at Kia - the Soul/Forte. Buick had some semi-reasonable lease deals too.
If they aren’t going to be driving that much stay away from electric right now - I found them to be VERY expensive and not worth the extra savings in gas costs.
If she’s really moving into the “burbs” then she’ll probably need a car but if she’s moving to a commutable/walkable town (NJ transit trains/buses near, and walk to shops/restaurants etc) it makes sense financially to not get a car, especially at her salary.
Even the 18mo Nissans will get expensive for her real quick after insurance, gas and tolls.
$35k and living in NYC does not need a lease. That may not be the answer that you’re seeking, but I cannot recommend otherwise.
Lets get down to the brass tax here:
I think you’re attempting to look at leasing as a temporary solution to her (foreseeably) permanent issue. Sure, the rent charge and monthly payments may be lower… but at the end, that doesn’t mean that she will be better off than had she purchased/financed a vehicle. I.e. she leases a Nissan XXX for 18 months at a great price, great!! However, she is caught with her pants down in 2025 (the vehicle will be worth nothing so she has to start from scratch again).
You would have been right ~3 years ago but things have changed a lot.
Repetitive short term leases like the Nissans that some people are suggesting will destroy your friend’s financial future. Once you add up all the costs, the supposed $199 a month is more like $600 a month.
Buy a used Corolla for the minimum loan amount of a credit union. I can recommend an honest mechanic in NJ.
