SoFi

So you’ve decided to get a new car. You’ve picked out everything from the color to the floor mats. But pump the brakes. Should you lease or buy? There are many factors to consider.

Check out this overview of leasing vs. buying, plus get help deciding how to save for your next set of wheels.

Owning vs. Leasing a Car

When you own a car, you purchase the vehicle outright from a dealer or private owner with cash or by financing it. You can keep it for as long as you want, and you can sell it in the future, if you wish.

When you lease a car, you do not own the vehicle. Instead, you make monthly payments to the owner for the right to use the vehicle. You must return the car at the end of your lease agreement or buy it at that time.

Initial Costs

When buying a car, the upfront costs are fairly obvious. You either need enough money to buy the car outright, or you need a big enough down payment to start financing the vehicle. Financing will also involve taxes, registration fees, and other charges.

When financing a car, it’s a good idea to look at the total cost: Multiply the monthly payment by the number of months in the loan, add the cost of taxes, fees, and add-ons, and finally subtract the value of any trade-in or down payment. The result is your total cost.

With leasing, the upfront costs can vary. Typically, the initial costs to lease a car include at least the first month’s payment, a security deposit, taxes, registration fees, and an acquisition fee.

Some lease charges are negotiable, according to Edmunds. They include the cap cost, or basically what the vehicle would sell for, and sometimes the “money factor,” or interest rate.

If you suspect that a dealer is marking up the money factor, you could ask for a lease based on its “buy rate”—the rate you could get from one of the dealer’s lending partners without the dealer markup.

Many other factors that may be negotiable during the leasing process are the mileage allowance (you can always try to get a higher allowance without paying extra fees); the trade-in value of any car you’re trading in; and, if you plan to buy the leased vehicle after the term, the buyout price (you can try to haggle for an amount lower than the anticipated value of the vehicle at the end of the lease).

Monthly Costs

If you buy a vehicle outright you will not have to make any monthly payments, of course. If you take out a loan, you will need to make a payment toward the principal, plus interest, each month. (You’ll also need a good credit score to finance a car.)

When leasing a car, you will be required to make monthly payments that include interest charges and taxes.

Recommended: Car vs Truck Value: Comparing How They Depreciate

Better to Lease or Buy a Vehicle?

When you own your car, it’s yours—and you can drive it as often as you’d like. If it’s a new purchase, you’ll get a manufacturer’s warranty for three years and sometimes longer.

When you lease, typically for three or four years, the number of miles you can drive in a given year is usually limited to 10,000 to 15,000. If you exceed the mileage limit, you will pay an additional fee per mile.

Beyond mileage, you may have to be more careful when driving a leased car. Any scratches, dents, or dings could come with wear-and-tear penalties.

What about repairs? A leased car is usually still covered by the manufacturer’s warranty. Basic maintenance may also be covered.

Two other broad thoughts:

Consider Your Lifestyle

If you’re someone who simply loves to go on road trips with your mountain bike, surfboard, and camping gear in tow, owning may be a good option. That way, you never have to worry about how many miles you’ll log or the scratches your car will get as you drive through the forest.

If you’re looking for a commuter car, or if you like to have the newest model with the latest tech accessories, leasing a car may be the way to go. When your lease is up, you can look for something new.

Just realize that when the lease ends, you may face a turn-in fee if you don’t lease another car from the dealer.

Recommended: How to Spot Good vs Bad Car Value Estimates

Consider Your Finances

Before deciding to buy or lease a car, it’s crucial to look at your current financial situation.

If you have enough money tucked away to purchase the car outright, would you still have money in savings?

Or if you’re looking to take out a loan, do you have enough money coming in each month to cover the payments? Do you have enough money in an emergency fund to cover unforeseen events? If you can answer yes to these questions, you may be in good shape to buy a vehicle.

As for leasing, you should assess whether you have enough income to cover the lease payments for the entire term. Breaking a lease can be an expensive proposition: It means paying the balance due, including any penalties and fees.

You also want to ensure that you have enough money to cover any unexpected expenses, including costs for going over your mileage limit.

Recommended: Does Paying Off a Car Loan Help Your Credit?

Dollars & Sense of Leasing or Buying a Car

The monthly cost of leasing a vehicle is often lower than auto loan payments. But to parse it further, consider the costs of buying a new vs. used car. (Buying a high-mileage car has its own pros and cons.)

In one detailed comparison of leasing a car, buying a new car, and buying a used car, over the course of six years the total costs for a used car were the lowest (the comparison did not include any repairs). Leasing was the next lowest. Buying a new car had the highest total costs.

Here’s another wrinkle if you do lease: If you decide to buy the car at the end of the contract, you’ll likely pay thousands of dollars more than if you had bought it from the get-go.

The Takeaway

The decision to lease vs. buy a car can rest on factors like total costs, annual mileage, and the urge to drive the latest model every few years.

Need help saving for a car, purchased or leased? A money-tracking app like SoFi’s can help.

Keep tabs on your cash flow and spending habits, and get credit score updates, at no cost.

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

¹SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc’s service. Vehicle Identification Number is confirmed by LexisNexis and car values are provided by J.D. Power. Auto Tracker is provided on an “as-is, as-available” basis with all faults and defects, with no warranty, express or implied. The values shown on this page are a rough estimate based on your car’s year, make, and model, but don’t take into account things such as your mileage, accident history, or car condition.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SORL0523014

Bank account bonuses let you earn money or other rewards just by banking, though there may be certain conditions you’ll need to meet.

Typically, bank account bonuses are offered one time, for opening a new account. However, some institutions give ongoing rewards as an incentive for doing business with them. Many bank bonuses require account holders to deposit or maintain a minimum amount of money or meet other qualifications.

Bank bonuses could be a good way to earn or save a little extra, especially if you’re already considering opening a new account or moving your money around.

How Do Bank Bonuses Work?

While the specifics depend on the bank, bank account bonuses are typically offered to new banking customers and they come with some specific stipulations.

Along with minimum account balances or opening deposits, bank sign-up bonuses may also require certain actions—such as making a certain number of debit card transactions or receiving a monthly threshold of direct deposits for several months running.

Once the account holder has opened the account and done whatever actions are required, the welcome bonus is usually deposited directly into their account.

Because some of the required actions may take time to be completed (and due to the bank’s processing procedures), it might be awhile before the account holder sees the bonus—sometimes 60 days or even as long as 120 days. In other words, a bank account bonus isn’t necessarily quick.

What’s more, bank bonuses frequently change as financial institutions review their needs and update their marketing strategies.

Why do banks offer these bonuses in the first place? By offering attractive bonuses, banks can distinguish themselves from the competition and perhaps win customers. They may specifically aim for clients who make large or regular deposits and transactions, all of which are good for the bank’s business.

Recommended: Pros and Cons Of Online and Mobile Banking

5 Common Bank Account Bonuses

These are some specific types of bank bonuses you may come across when shopping around to open a new bank account.

1. Sign-Up Bonuses

One of the most common types of bank account bonuses are those designed for new customers of the bank in question.

Bank account sign-up bonuses, also sometimes called welcome deposits, range from about $100 to more than $500—though larger bonuses generally carry more stringent eligibility requirements. For instance, the bonus seeker may need to open both a checking and a savings account, and meet large minimum balance requirements.

Other common eligibility requirements include setting up direct deposit (and receiving a certain minimum threshold in direct deposits on a monthly basis for a specified number of consecutive months), making a certain number of debit card transactions within a given time frame of opening the account, and depositing a minimum amount into the account.

There are almost always stipulations and eligibility requirements for bank bonuses—which is why it’s important to read the fine print.

2. Bonuses for Upping the Ante

Another way banks might structure their bonus offers is to give higher rewards to those who are able to deposit more money into their accounts.

These institutions sometimes offer bonuses on a tiered system, with higher rewards available for those who are able to meet more strenuous eligibility requirements.

For other customers, a bank might offer a “basic” system of some sort, in which the new account holder will earn a small bonus for opening a new checking account and meeting relatively easy qualifications.

For instance, you might earn $200 if you’re able to fund your account with $5,000 and maintain that minimum balance for 60 consecutive calendar days.

That same bank might also offer a $400 reward for new customers who open both a checking and savings account and who can up that minimum balance to $15,000—or a $700 reward for those who can meet a minimum balance requirement of $50,000.

Higher tiers may come with additional privileges, such as waived fees, along with the bonus incentive.

3. Direct Deposit Bonuses

As mentioned above, many bank account bonuses require setting up—and receiving —direct deposit payments into the new account.

The direct deposits may need to reach a certain minimum amount per month or happen within a given time frame of opening the account. Each deposit may need to meet a certain minimum as well.

For example, one bank might require new account holders to receive $2,000 in direct deposit funds within 60 days, while another might require at least two direct deposits of $250 or more within 90 days of opening the account.

For some banks, simply setting up direct deposit is enough, but again, all this critical information will be in the fine print of the offer.

4. Checking and Savings Combo Bonuses

In some cases—as with the tiered rewards system outlined above—a bank may offer additional incentives to those who open both a checking and savings account.

For instance, a new customer might be able to earn $200 for opening a checking account and $150 for opening a savings account, totaling a welcome bonus of $350.

Of course, as with the other bonuses listed here, these rewards will likely come with stipulations and minimums, which could vary for each account.

Because of the nature of savings accounts, new account holders probably will need to maintain high minimum balances to qualify for the reward.

5. Waived Bank Fees

While it’s not the same as an extra $100 placed into an account, many banks offer the opportunity to waive monthly maintenance fees and other costs by maintaining certain minimum account balances or having a specific minimum number of direct deposits per statement cycle.

Although they’re generally small, monthly maintenance fees can eat into the account holder’s income, so having them waived can be a nice incentive.

Recommended: How Much Money Do You Need to Open a Bank Account?

The Fine Print

Bank bonuses can come in different types with different requirements, so it’s important to always read the fine print carefully. That’s where account holders will learn what exactly they have to do to get the bonus.

Also, there may be rules about what happens if you close your account early. Some banks will take back their bonus if you close your account shortly after meeting the bonus requirements, for instance.

These kinds of clauses mean it might not be wise—or even possible—to open multiple bank accounts to get a variety of bonuses.

It may be smarter to use bank sign-up bonuses as one factor to consider when you’re evaluating your options for switching banks.

The Takeaway

Although bank bonuses can certainly be valuable, they’re not always easy to earn. Depending on your personal financial situation, bank bonuses may or may not be worth it, especially if it means tying up a significant amount of your income to maintain high monthly minimums.

What’s more, as nice as a one-time bonus is, there are accounts that offer continual benefits to their clients over time. For instance, with SoFi Checking and Savings, you’ll earn a competitive APY, pay no account fees, and have no minimum balance to meet.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOBK0523004U

The hardest part is knowing where to start. We’ll walk you through planning timelines, money-saving tips, and ideas for when, where, and how long your reunion trip should be.

Benefits of a Family Reunion Trip

The benefits of a family reunion trip are many: It’s a rare chance to reconnect, strengthen relationships, and make new memories. Sure, you’ll see one another at the next wedding, graduation, or funeral, but a dedicated family reunion is an opportunity for multiple generations to simply be together, without the pressure of pre-scheduled events.

Family reunions are especially important for the oldest and youngest family members. Grandparents and great grandparents won’t be around forever. Little ones may not immediately appreciate the time they spend with older relatives, but they will be sure to appreciate these memories — and group photos! — years down the line.

How to Plan a Family Reunion Trip

Organization is crucial when it comes to destination family reunion planning. After all, you’re planning a vacation for potentially dozens of people of varying ages and interests. Maybe you’re a spreadsheet and travel aficionado, in which case, bon voyage! If not, read on for everything you need to consider when planning a family reunion trip, then divide and conquer.

Where, When, and How Long: Guidelines

Every family has diverging interests. Maybe the younger generation love long hikes, but Uncle Mike prefers antiquing, your grandmother could splash in the pool all day, and your brother is practically a vampire. A well-planned destination family reunion vacation will offer something for everyone.

Recommended: How Families Afford to Travel

How Long Should A Family Reunion Trip Be?

Is your family thinking of a week-long vacation or a weekend getaway? Keep in mind that not everyone has the same vacation time from work, and some people may have other obligations they must allocate vacation days to. It’s also important to find out which families may be traveling with pets.

The length of a reunion is often determined by budget. Whoever the lead organizer is should simply ask the group (more on how to do that below) what everyone’s maximum budget is and go from there.

When and Where to Take a Family Reunion Trip

Agreeing on a time of year for your reunion may be easier than you think. First, take into account how many attendees have school-aged kids. For them, winter and summer breaks will be the most convenient times to travel, but also the most expensive. Instead, consider using a shoulder-season school holiday, like Indigenous Peoples’ Day in October or Memorial Day in May, and taking a long weekend trip. Bonus: The weather in many destinations will be pleasant, but prices won’t yet be sky-high.

When evaluating destinations, contemplate: How many people are coming? Will you fly or drive? Is it easier to stay somewhere walkable, or does the group prefer renting cars? Ask select family members for their top (realistic) destination ideas.

Recommended: How to Balance the Urge to Travel and the Need to Save

How to Save On A Family Reunion Trip

Accommodations tend to take a big bite out of travel funds. For most groups, sharing one or more houses or apartments will be much more affordable than booking hotel rooms. In Montana, for example, you may well find two nearby houses that can hold a dozen people each. In Fort Lauderdale, you’re more likely to find three- to four-bedroom condos.

Sharing accommodations can also make it easier to prorate costs, allowing those on a tight budget to select a smaller room or pull-out couch. (Also keep in mind credit card rewards, which are sometimes applicable to vacation home sites.)

Other advantages of a rental house are space to spread out, doors that can be closed when kids are sleeping but adults are up late talking, and the ability to prepare meals — another huge cost saver.

Family Reunion Planning Timeline

Your planning timeline will vary depending on your destination. If the gang is flying to Hawaii from across the country, you’ll want to book flights many months in advance and keep your eye on hotel prices. If everyone is driving, you can book accommodations a few months out and then wait to plan activities.

6–12 months out: Use a free online poll tool or the poll feature in messaging apps like Whatsapp and Telegram to vote on when and where to go. The group chat can be your best friend and worst enemy (btw, you may want to mute it), but it is useful for soliciting opinions. It’s important to confirm budgets and expectations now.

4–5 months out: Once a destination is decided, pull a few accommodation options to fit the group’s needs, whether that’s a block of hotel rooms, a few condos, or a rental house. Reconfirm everyone’s budget, as financial circumstances can change.

If your family reunion trip requires flights, compare the price of a ticket in miles vs. cash so you can decide whether to use a credit card that gives credit card miles vs. cash back.

2 months out: Keep the momentum going by booking any activities, whether you need lift tickets, plan to take tours, or want to go snorkeling. With major logistics out of the way, this is the fun part.

1 month out: Everything that needs to be booked in advance is done, and the countdown is on. Now is the time to look into nearby grocery stores, where people might eat if they arrive late, whether strollers and carseats can be rented or should be packed, etc.

Do’s and Don’ts for a Fun, Memorable Reunion

•   Don’t overschedule your family reunion trip: Try booking only one major activity per day for those who want to participate, whether that’s a beach excursion, a museum, or a walking tour.

•   Do respect peoples’ natural rhythms: Aunt Sue may be ready for 5am bird-watching, but your college-age cousins are more likely to roll out of bed several hours later. Everyone is more cheerful when they get enough sleep, so don’t wake people at the crack of dawn with a megaphone.

•   Don’t feel compelled to capture every moment. The pressure to take a million perfect photos is very real, but try to live in the moment. You may not see some of these people again for several years.

•   Bring an instant camera: These tangible memories are the perfect family reunion souvenir, and instant camera film colors are universally flattering.

•   Pack games: Uno, travel Scrabble, Code Names, even simple packs of cards provide entertainment after dinner and on rainy afternoons.

•   Make videos: Film older relatives talking about their lives. Prompt them with questions about their childhood, who their friends were, what they ate, what they dreamed their adult lives would be. This is a wonderful way to memorialize older generations.

After the Event

•   Create a place for everyone to share photos, like Google Drive or Dropbox.

•   Print a few of the best photos and mail them to your family with a short note; it’s a treat to get snail mail.

•   If people have suggestions for the next family reunion trip, note them.

•   Use an expense tracker to organize who owes whom for shared costs.

The Takeaway

A family reunion is a unique chance for relatives across generations to meet for the first time or reconnect. Summer is generally the easiest time for families with young kids to travel, but it’s also the most expensive. If your family reunion trip works for a long weekend within driving distance, this is the most budget-friendly option. While it takes some coordination — and maybe a little stress — be assured that it is worth the trouble.

Photo credit: iStock/ferrantraite

The SoFi Credit Card is issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Members earn 2 rewards points for every dollar spent on purchases. No rewards points will be earned with respect to reversed transactions, returned purchases, or other similar transactions. When you elect to redeem rewards points into your SoFi Checking or Savings account, SoFi Money® account, SoFi Active Invest account, SoFi Credit Card account, or SoFi Personal, Private Student, or Student Loan Refinance, your rewards points will redeem at a rate of 1 cent per every point. For more details, please visit the Rewards page. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOCC0323045