Health Insurance Enrollment Process: Should I buy or rent?

Should I buy or rent? -

Deciding to invest in a new set of wheels is just the beginning of a long series of choices. Should you buy or rent? If buy new or used? What about the inside: fabric or leather

Although we can not talk to your preferences furnishings, we can offer advice that will save you time, money and stress. (We also have some useful ideas on car insurance, too!)

Buy or rent?

Although the decision to buy or rent amounts to money for most people, Ron Montoya advice editor at consumer edmunds.com advises automobile owners to look beyond the dollar amount. "It depends on your lifestyle, the way you treat your car and how long you intend to keep," he said.

purchase can be the ever-popular choice, but the rental continues to gain ground (at present, a quarter of all drivers are going in this direction.)

generally, leasing is a good option if you.

you do not want the worry of repairs, if they occur, warranty usually covers.
lead Always an average number of miles per year (between 10,000 and 12,000).
Having a steady income and do not mind the payments without set end date

consider these advantages and disadvantages:

Leasing
more	Cons
monthly payments less or even no money down and low . A new car every two years. low to no maintenance. resale value does not matter. A tax deduction for small businesses.	May require a higher credit rating. Holds monthly hidden costs like taxes or fees when you turn the car. cap on mileage (and penalties if you 're over the limit). If you decide to buy the car, it is more expensive at the end of the lease if you bought it outright.

If the rent seems to be the choice for you, also keep in mind that following:

Although most leases allow 12,000 miles a year, many now offer as few as 10,000. Make sure you know exactly how many miles you can drive that penalties can run more than 15 cents per mile. Yikes!
The rental companies offer several periods of time to pay your lease. According to edmunds.com , a three-year lease is often preferred because the guarantees of most manufacturers cover at least that long.
Some manufacturers offer incentives on cars that do not sell well, so be sure to ask your dealer about them.
you pay taxes and monthly fees on leases compared initially when buying, so make sure you get the real monthly payment with taxes and fees before making any decision.

If the purchase is more your style, you're in good company. "The property is in our nature," said Dave Freeman, vice president of personal lines underwriting ERIE. "Americans want to be able to say" I confess "rather than" I borrow. "

The purchase is usually a good idea if you:

agree with driving your car well after paid
Drive. . more than 12,000 miles per year
you want to get some of the money when you sell

consider these advantages and disadvantages.

Buy
more	Cons
It is your . payments stop once the car is paid. This will prevent the additional charges that can come for rent.	More money due for signature and the highest monthly costs. Repair and maintenance costs. Depreciation incurred if you plan to sell the car when it is paid.

If you are still on board to buy, keep this information in mind:

Make sure you know the total cost of the car, not just the monthly payment. "Ask your dealer for at the door price," advises Montoya. "This includes the payment, taxes and other costs associated with the purchase."
Negotiate before discuss funding. in some cases, dealers will offer a different price if they assume that you are financing through them.
Learn about financing options. Dealers often offer their own financing, so they can point you in that direction. Just keep in mind that local credit unions and banks can offer competitive rates.

New or Used ?

According to cars.com , drivers will buy about 14 million new cars in 2012. If you think you may be among those shopping for a brand new vehicle, consider a few things first.

New Car
plus	against
security features the most recent. customizable. A better warranty. generally better fuel efficiency and lower emissions.	more expensive to insure. maintenance costs required to maintain the warranty. No reliability record. higher taxes.

Also note that a new car is not out of the question if you make purchases largely on price . "Most people think that used cars are cheaper, but this is not always the case," Montoya said. "Many vehicles are sold high because of the shortage due to people keeping cars longer in difficult times. This makes their prices comparable to new cars "

Before going through with a new car sales, keep these things in mind :.

Many manufacturers Car offer discounts on new cars, ask your dealer about them.
Check your bill for added costs or fees, and talk to the merchant if you see things you did not ask ., like fabric or protection against rust most dealers charge landing fees to deliver your car to the dealership - but some renounce

If the news is not your thing, consider use after all, nearly 37 million vehicles belonging previously changed hands. 2011.

used
more	Cons
Less expensive to insure. more car for your money. CarFax ^® vehicle history report provides details car history.	oldest security features. more frequent repairs. Not customizable.

Remember also:

of research. Many dealers offer Carfax ^® of vehicle history reports to give you peace of mind. "All cars have problems," said Montoya. "Find what you can handle is the key."
Ask about a warranty. Some used cars come with factory warranty while some do not. Better to ask than to assume.
Beware of the extended warranty. Many dealers offer them (but not all buyers need a) while others certified used cars come with an existing guarantee. In the long run, you are usually better save for the expenses that the bombing for an extended warranty.

Whether buying or renting, make sure that you are willing to pay taxes and registration fees, which can reach thousands of dollars on the cost of your vehicle. And still the facts. "Resources like edmunds.com and Kelley Blue Book are very useful for assessing the value of a vehicle," says Freeman. "And do not overlook the help of your agent ERIE can give you the final price of a vehicle, how to properly and ensure that the difference of insurance will you decide between several vehicles. "

the car insurance you can rely on

We all know new cars depreciate rapidly (by most estimates, about 15 to 20 percent each year). ⁱ If this not enough, consider the fact that the compensation of a font standard perhaps provides adequate car insurance to buy a replacement used car or you could be held responsible for the lease payments on a car which is completely totaled.

ERIE gives you peace of mind to overcome situations with New Auto safety of the rider cover ⁱⁱ. It includes features such as:

security Lease / loan : Covers the difference if you owe more on your car to its present value and it is a total loss. Coverage also applies to car rentals or car loan for up to seven years
The replacement cost :. Country replace your car if it is two years or less and a total loss. You will receive a new car of the same make and model and the model is available, you get a similar vehicle. ⁱⁱⁱ
repair coverage :. ERIE will pay to repair your vehicle without a deduction for depreciation if it is two years or less and not a total loss

learn more about auto policies and ERIE this endorsement by contacting ERIE your insurance agent.

Jennifer Kubiak is a financial information assistant at Erie Insurance.

ⁱhttp://www.bankrate.com/brm/news/auto/011226a.asp
ⁱⁱ This amendment should be added to a new vehicle within 60 days of the rental / purchase of the vehicle and the Lessee must have purchased comprehensive coverage and collision insurance. This approval is not available in New York or North Carolina.
ⁱⁱⁱ Not available for leased vehicles.