The average driver may have had a first-time car buying experience purchasing a used car from a neighbor, or getting a car gifted from a family member. But it is good to prepare for the more complex process of buying a new car or leasing for the first time. Let’s compare the two.

Differences between buying and leasing a car

When you buy a car, you agree to pay the value of the vehicle no matter how long you intend to keep it. When you lease a car, you agree to drive the car for only a set number of months and miles before returning it. During that time, you pay a small percentage of the value of the car by making monthly payments.

You may find advantages and disadvantages to both owning and leasing. Here are a few things you might also want to consider as you decide which may be best for you.

Budget: How much can you afford to pay monthly for a car? Now think about the next few years. How much do you expect to be able to pay in the future? Your estimate should include your house payment or rent, utility bills, food and other ongoing payments.

Mileage: How many miles per week do you expect to drive a car? Mileage in a car lease agreement is typically determined with the average driver in mind. If you have a longer-than-normal commute to work, you might want to consider buying a car.

Maintenance: Be honest about how well you're likely to take care of your car, in terms of keeping up with necessary repairs, oil changes and other services. Your answer may be a factor in whether you buy or lease a car. If you buy a car, how well you care for it is up to you. On the other hand, if you lease a car, the leasing company typically requires you to keep it in reasonable condition.

New vehicle preference: Do you enjoy the feeling of getting a new car every few years? If you buy a new car, you'll likely have a four- to six-year loan to pay off before getting another car. With a lease, you'll probably have a two- to three-year commitment before you could lease another new car.

Considerations when buying a car

Payments: One of the main reasons some people prefer to lease a car is the total cost. Both the down payment and monthly payments may be lower than if you were buying the car.

New car: Some people feel safer driving a new car. Others simply enjoy the experience. In either case, leasing may give you the opportunity to switch to a new vehicle every few years, when your lease is up.

Maintenance requirement: When you return the car at the end of the leasing period, the car must be in excellent shape. If the condition of the car doesn't meet expectations, you may have to pay another fee. The leasing agreement's warranty typically covers a few specific maintenance issues, but you may have to pay for other repairs.

Mileage restriction: Your lease will usually have a mileage restriction to help keep the car in top-notch condition. Leases commonly allow between 10K to 15K miles per year. If you drive more than allowed, you can expect to pay fees.

Where to apply for an auto loan

There are a variety of sources you could turn to when you need money to buy a car, such as a bank, a credit union or a car dealership’s finance company. In each case, the lender will likely run a credit check to review your history of debt.

But each lender will have its own rules regarding how much to charge you in interest for the loan. They'll also likely differ on how long you'll have to repay the loan and what your monthly payments will be. Many people go to their bank or credit union first when looking for a loan. Banks and credit unions want to help you find a way to accept your application because you’re already a customer.

Car loans from a dealership’s finance company are often the most convenient because you can complete the paperwork when you’re shopping for a car. But it’s usually worthwhile to compare the offer with those from banks and credit unions first.

Auto insurance

You need auto insurance in most states before you can legally drive a vehicle on a public road, regardless of if you buy or lease. But each state has its own laws regarding which types of auto insurance you need. When leasing a car, the leasing company may require you to buy more insurance than you might typically buy if you owned the car.

Deciding to buy or to lease

Deciding between car buying and car leasing involves being honest about things like your driving habits and your financial situation. For example, if you don't like limit restrictions on how many miles you can put on your car, you might decide to buy. But if you enjoy driving a new vehicle every few years, you might choose to lease. Are the down payment or possible higher monthly payments an issue? If so, leasing may appeal to you.

And remember—whether you buy or lease, you’ll need auto insurance. You can get a quote for auto insurance with the TruStage™ Auto and Home Insurance Program.

Auto and Home Insurance Products are issued by leading insurance companies. The insurance offered is not a deposit, and is not federally insured, sold, or guaranteed by any financial institution. Product and features may vary and not be available in all states.© TruStage

Winter home preparations you may be able to do yourself.

Of course, any prep you can do yourself may help you save some money.

• Bring your plants indoors. Don’t wait until the first frost—some plants are sensitive to temperatures even above freezing.


• Cover or store away your grill and lawn furniture. If you use plastic sheets or tarp to cover them, you should have less cleaning to do in the spring.


• Cover window AC units with a water-resistant tarp. You can use heavy plastic or buy coverings specially designed to fit your AC units.


• Check outside water faucets for leaks. If you live in a cold climate, consider shutting off the water to outside faucets to help prevent damage to the pipes and faucets. Also, bring hoses inside to help protect them from winter damage.


• Inspect doors and windows for drafts. Caulking around doors and windows will help keep the cold air out. You can also put a rolled-up towel at the foot of your doors to prevent cool air from drifting in.


• Inspect patios, decks, and porches for water damage. If you see cracks, chips, and soft spots, you may want to call a professional. Once water gets into holes, it will expand when it freezes and can lead to more damage.


• Order firewood or other heating fuel early. Some people wait until the last minute to place their orders. Avoid missing out on supplies by ordering what you need well before winter sets in.


• Test smoke and carbon monoxide detectors. If you push the test button and don’t hear a beep, it’s probably time to replace the battery.


• Get your snow shovel ready to go. Or, if you have a snowblower, make sure it’s in good operating condition before the first snow.


• Buy rock salt or ice-melting pellets. These items are typically in short supply once walkways turn icy.


• Adjust your ceiling fans to turn clockwise so that it pulls air upward. Many fans have this setting to help distribute the heat and potentially lower your heating bill. In the warmer months, your ceiling fans should turn counterclockwise and push air downward.

Winter prep tasks that might require a professional.

If any home winterization tasks are outside of your skillset, consider getting a trained professional to safely do the work.

• Have your roof inspected. The roofer will primarily look for missing shingles and signs of rotting wood. You want anything repaired or replaced that will allow water inside your home. This work will be difficult to do (and nearly impossible in some parts of the country) once winter begins.


• Have your gutters and downspouts cleaned and repaired. When rain and melted snow can’t flow smoothly from your roof, it can freeze and refreeze. Gutters can sag from the weight of the ice, bending out of place and causing more damage. The ice can also pull on nearby shingles, creating an opening for water to get inside your home.


• Have your chimney cleaned and inspected. Caring for your chimney is worthwhile even if you never use your fireplace. If bricks have become loose, ice could cause a partial collapse. And if you do use your fireplace, you’ll want to make sure that old soot is removed and any cracks in the mortar are repaired. You want to reduce the chances of a spark creating fire within the walls of your chimney.


• Get your HVAC serviced. Even if your HVAC worked well all summer, that doesn’t mean it will continue to do so in the winter. An experienced technician can spot potential issues before they become serious problems. And once temperatures drop, you could have a long wait to get a repairperson to your house.


• Cut potentially dangerous tree limbs. Do you see tree limbs extending over powerlines? If so, let your utility company know. It will typically remove the limb for free. However, you’re responsible for any branches hanging over your home. Consider calling a tree company if the limb doesn’t appear strong enough to hold up against a heavy snow or ice storm. The cost of having the limb cut will usually be much lower than the cost of the damage it could cause by crashing onto your roof.

With winter right around the corner, now is a great time to make sure your home is ready for the colder temperatures. Taking a few precautionary steps may help you avoid having to make a homeowners insurance claim, which can impact the cost of your insurance.

Talk about sticker shock! Browsing the grocery store, pulling into the gas station, or searching for simple household items online can be downright scary lately. Prices have really gone up!

While you can’t control the cost of goods and services, there are a few things you can do to better understand what is happening and to weather this challenging time.

First, what is inflation? “Inflation is the increase in the prices of goods and services over time,” according to the Federal Reserve1. It is important to remember that inflation is the overall increase in the price of goods and services, not just a single item or even several items. A variety of factors are driving inflation, including high demand for consumer goods and low supply related to the pandemic, as well as higher energy prices.

So, what can you do?

• Stay calm. Think twice before you take drastic actions like moving all investments or cashing out your retirement savings plan (there may never be a good time for that). Keep making good financial choices every day.


• Increase income if possible. You may want to consider job prospects or ask for a raise.
  
  It is an employee’s market out there. Everywhere you look there are help wanted signs. If you are an employee in good standing, now could be the right time to try to negotiate a higher rate or salary.
  
  You may also want to consider pursuing a career change, as even some entry level positions in high-demand fields are giving new employees signing bonuses and/or higher salaries because of worker shortages.


• Reduce bills/expenses. Consider reducing some of the “extras” in your monthly expenses. Things like streaming services, cable bills, cell phone plans, and gym memberships may be surprisingly negotiable. Call customer service and ask if you can get a better rate, an introductory rate, or can cut unused items from your bill. You don’t know until you ask!
  
  Consider changing the way you shop. Look into using discount cards at grocery stores or other stores that offer them. Shop for items that are on sale or items that are sold under store brands. You may also be able to hold off on purchasing big ticket items that may come down in price over the long term—like cars or home improvement goods.


• Pay off debt. With rising inflation comes rising interest rates, meaning the credit card and other debt you have could INCREASE, even if you aren’t actively spending. It is always a good time to think about paying off high-interest debt. If you can’t pay cards off outright, you might want to consider transferring your unpaid balance to a card that offers a zero-interest promotion (usually for six months or one year). That could buy you more time to pay down the debt without paying high interest on the money you owe.


• Keep planning for the future. Even saving a little every month can really add up in the long run. If you have a traditional savings account, think about moving some of your money into investments that have the potential to grow your money. A financial advisor may be able to help.

Imagine if your family had to deal with high prices, and you weren't there to help provide for them. That’s one reason you may want to consider life insurance to help protect them after you are gone. There are life insurance policies designed for people who don’t have a lot of money left over after paying their bills every month.

There are two major types of life insurance—term life insurance and whole life insurance. They both offer distinct benefits.

Term Life Insurance plans are tailored to your short-term needs and budget. You can select how long the plan lasts—5, 10, 15, or 20 years. This may be the right type of plan to help protect your family while you raise your kids or pay off your home. It's also usually the least expensive type of life insurance.

Whole Life Insurance is designed to last a lifetime, no matter how long you live. While this option may be more expensive than term life up front, if you can fit the coverage into your budget, it could be a sound investment in the future. Also, the price you pay never goes up, even if inflation does. Finally, whole life insurance policies typically build cash value that you can borrow against over time—giving you another method to help prepare for the next financial bump in the road. [1] The Fed - What is inflation and how does the Federal Reserve evaluate changes in the rate of inflation?

There’s a lot of information out there about car insurance, and it’s not always easy to know what’s true and what’s not. We’re going to look at seven common beliefs that some people have about car insurance and explore why they may or may not be myths. That way, you should be in a better position when evaluating your insurance options to help keep you and your loved ones protected.

Myths about auto insurance

1. If I get a red car, I’ll have to pay more for auto insurance
   If you love the color red, don’t hesitate to buy a red car. A car’s color does not impact insurance costs. Instead, insurers consider such things as the age of the vehicle, its price, and any safety features that it might have.


2. Men pay more for car insurance
   This myth contains a small amount of truth. Some insurers may consider teenage boys and young men to be bigger risk takers than teenage girls and young women. So, for a few years, those insurers may charge them a little more. But once they’re older, men typically pay the same price for auto insurance as women do.
   
   In fact, in some states, it’s illegal for an insurer to charge higher rates based on gender.


3. As I age or develop health issues, my insurance rates will automatically go up
   Auto insurance doesn’t place a significant focus on your health. Your insurance costs are only likely to increase if your health issue directly influences your ability to drive.
   
   And as you age, instead of seeing your insurance costs go higher, you may see them drop. This is because some insurers offer special discounts to older drivers.


4. My credit score has nothing to do with my insurance costs
   Many drivers don’t know that their credit scores could affect how much they pay for their auto insurance. A low credit score could raise a driver’s insurance payments.
   
   It’s legal in most states for insurers to look at your credit score, but a few states have outlawed the practice. And other states restrict how much the credit score can impact the price of your insurance. But the bottom line is: yes, your credit score could affect your car insurance rates depending on where you live.


5. My personal auto insurance will protect me if I use my car for business
   Your auto insurance protects you only if you use your vehicle as stated in your policy. So, unless your insurance agreement mentions using the car for business, you won’t have protection if you’re in a work-related or working-hours accident.
   
   For example, your regular car insurance provides coverage for your everyday driving. But if you take on a side job that requires driving, such as making deliveries, you’ll need business car insurance in addition to your regular auto insurance.


6. If my friend uses my car, his insurance will pay for any accident
   In most states, the car owner’s insurance is primarily responsible for paying after an accident. That means that a friend could cause an accident that increases your insurance rate. Laws vary by state, so talk with your insurance agent before you lend your car to anyone.


7. I don’t need insurance for my car because thieves don’t steal older vehicles
   If you drive a popular car, thieves will likely be interested in it regardless of how old it is. Your vehicle could be in demand because of its parts. Even if your car isn’t a top seller, it still may be a target for thieves. One of your car’s features could make it desirable for some car enthusiasts willing to resort to illegal means to have it.

Know the facts about auto insurance
Take the time to research your car insurance options, and ask your insurance agent as many questions as possible. Doing so may help you differentiate facts from myths. You’ll then be able to more confidently shop for the right auto insurance to protect you and your loved ones.