Car Leasing? – Could It Beat Financing and Purchasing.
Buying a car is one of the biggest purchases you are likely to make besides a house; it’s wise to explore all options thoroughly before you choose which route to go down.
The most obvious difference between leasing and purchasing is that you get a new car every few years, without the hassle of having to sell the car on. When you buy a car you make monthly payments until the car is paid off then it belongs to you and you can do what you please with it.
What are the benefits of leasing or buying?
The biggest benefit is the financial gain, leasing often has lower monthly costs, depending on the car you lease. This is due to you only paying for the value your car loses of the lease term and not the actual value of the car all together.
Most lease deals have a very low down payment fee compared to when buying when down payments can be very expensive in order to make monthly costs manageable. Even if you struggle for any form of payment the brilliant thing about car leasing is that it is far easier to obtain than a loan is even if you have a low credit score.
Many of us love the feeling of driving off in a new car, so why buy a car that you will be stuck with? Leasing a car allows you to have a brand new car for a few years (between2 and 4 on an average) and at the end of that hand it back and lease something different if you choose to do so.
There are two different ways to lease a car, either personal leasing or business leasing. Personal leasing is simply where you lease the car for yourself, you pay for it yourself. Business leasing is where the car is leased and payed for through your business, this could be either for you or a company car. Business leasing often works out cheaper than personal but each have their pros and cons.
Financing has been a very popular choice for many people as it allows them to spread the cost of a car over a set period of time, and many car dealers now allow you to swap the car after your term is up as long as you stay with them. However, even if you decide to take this option in the long run you still lose more money.