Should you lease your next car?

To buy or to lease, that is the question

Two hands exchanging car keys for a new lease
If you want low monthly payments and a smaller down payment, a car lease may be worth considering,
(Image credit: Brian A Jackson / Getty Images)

The Fed's recent move to cut its benchmark interest rate offers some hope to prospective car buyers, as taking out an auto loan may soon become more affordable.

While not the only factor that influences the rate you receive (your credit, among other factors, is key), "car loans tend to track with the yield on the five-year Treasury note, which is influenced by the Fed's key rate," said The New York Times. In other words, the Fed's latest move "will help Americans who need to borrow money to buy a new car" — although it could still "take months to reach borrowers," said Kelley Blue Book.

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Becca Stanek, The Week US

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.