Is leasing steering the trend for new cars, or is purchasing still in the fast lane?

Answer: 25.35%. That's 1 out of every 4 transactions!

Questions:

• Can you explain the difference between buying a new car and leasing one?
• Why do you think consumers are increasingly relying on leases?
• Do you think a leased car is a good financial decision?

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Experian):

Over the last 3 years, the average amount of money financed for a car has remained relatively steady at around $41,000, but the interest rate has jumped from 4.61% to 6.84%. This has caused the average monthly payment to increase from $672 to $734 from 2022 to 2024. Over the same time period, monthly payments for leases have remained stable in the mid-$500 range.

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Want to learn more about the process of Buying a Car? Check out the Buying a Car mini-unit.

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About the Author

Dave Martin

Dave joins NGPF with 15 years of teaching experience in math and computer science. After joining the New York City Teaching Fellows program and earning a Master's degree in Education from Pace University, his teaching career has taken him to New York, New Jersey and a summer in the north of Ghana. Dave firmly believes that financial literacy is vital to creating well-rounded students that are prepared for a complex and highly competitive world. During what free time two young daughters will allow, Dave enjoys video games, Dungeons & Dragons, cooking, gardening, and taking naps.