Does leasing fit your driving pattern, or is car loan really a better option for you? Read this before you decide. For some, the car is merely a means of transport that must get them through the city’s busy traffic and home to the family.
Here are the followers of the popular mantra, ‘as long as it can run, it is good enough’. For others, the dream of driving through streets and alleys in the luxury car or the latest model is a greater driving force.
Regardless of the motivation, the car must be financed in one way or another if you do not have decent savings that you can hand over to the seller instead.
Need a bad credit car leasing?
In terms of financing the car, the choice is between car loans or car leasing. Leasing offers lower monthly lease payments.
If you want to know if private leasing is a good alternative for you, it is first and foremost a good idea to spend a few minutes investigating what leasing really means. When you know it, you can measure it against your needs and your financial situation.
Whether or not to own or lease your new car is very much a matter of how long you want the car to be in the carport.
In short, leasing is an alternative for those who want a new and safe car that you plan to run between 15,000 and 25,000 kilometers a year. If you also think that it is nice to change the car on a regular basis, the arrow also points towards leasing rather than car loans.
When you lease, you do not own the car, but you have full right of use. You are responsible for it and will provide maintenance throughout the lease term.
It is therefore important that you treat the car as it was your own and comply with your part of the service agreement. If you hand in a car with scratches, dents and coffee stains on the interior, you are responsible for rectifying this.
When entering into a lease, there are some requirements that you must meet. The requirements vary with the different leasing companies, but all require that you can document that you are able to pay the monthly service.
The car you want to lease must also be approved by the leasing company, but it is mostly no problem.
If you feel limited by leasing, car loans are probably the best financing option for you.
With a car loan, you buy and own the car, and you can drive as far as you want and do not have to worry about small-scale and other minor injuries. You can keep the car until the day when it has to give up after the many trips over the years or sell it further when you want.
Freedom is great as a car owner, but it is at the expense of something else. The downside is that it is difficult to say how easy or difficult it will be to sell the car again. The second-hand market is large, and it is almost impossible to predict how much value the car loses during the period.
When you take a car loan rather than lease, in some cases you are also more vulnerable to your finances. With a leasing agreement, you generally know your fixed monthly expenses, since, for most leases, a service agreement is covered which covers any repairs, etc. This is the responsibility of you yourself when purchasing with a car loan.
The car loan, therefore, makes the most sense to you who have plans to keep the car for many years. This kind of car financing also makes sense if you are open to buying a used car, as these typically do not fall as much in value per year as new cars.