There is nothing more relaxing and fulfilling like driving an automobile, the feeling of driving home a car with the latest automotive design. You can acquire a car by either buying or lease it; Leasing refers to a contract between two individuals or organizations the lesser and the lessee.
A lesser agreement stipulates the mileage a lessee can drive and also have insurances cover for the vehicle. It also outlines the wears and tears of the vehicle and the number of years for leasing. The term is mostly done according to time agreed on. It may be periodic, fixed or for an indefinite period. Analyst advises that the best and budget friendly leasing period should be three years.
Leasing vs. buying
Is it better to buy a car or lease a car? This is the most asked question when it comes to acquiring a car, despite the fact that most people prefer to buy a new car, it is proven that car leasing is the best way to purchase the latest automobile and the best way of getting a car at a less expensive cost.
Buying a car will cost you a lot of money as its loan rates are much higher. Lease payments are always much cheaper than loan payments as you only pay for the rent charges, taxes and fees while car buying you will have to pay for the entire purchase price, interest, taxes, and fees.
Leasing offers drivers who do not have a down payment for the purchasing the vehicle an easy time in getting a vehicle since the down payment for buying the car is more expensive than that of leasing. In car leasing, you can ask for a waive on the down payment from the dealer, according to Melanie Pinola publication “when is leasing a car better than buying?” She says, “You can pay around $ 3000 for buying the car and for leasing you can pay $2000” when taking it as a lease. In the long run, leasing has a less budget impact on the lessee compared to buying the vehicle.
People who want to change to a new model vehicle after a short period of leasing can acquire the vehicle at a much cheaper cost than an individual who wants to purchase the car. Leasing offers a great deal as one can walk to the lesser and pay up the lease fee and walk away or change if he wants another latest vehicle in the market while in car buying you will have to deal with the selling or disposing of your car when you decide to purchase a new car. In the end, you will incur losses as a vehicle will always depreciate in its value.
For lessee, he doesn’t have to worry about the future value of the vehicle since he will change it after a short period. A Lessee is also covered by the insurance that was agreed on in the contract and also by the factory warranty unlike buying the car where the buyer has to incur costs in repairing his vehicle and paying up the insurance company. Leasing ensures that the future doesn’t affect you financially as you will return it to the owner whether it has depreciated or not suitable in terms of technology and latest trends.
Leasing makes it easier for the lessee to get a top range of vehicle at a lower cost and also ensures that you don’t incur losses in terms of depreciation and repairs. As we look at the pros of leasing, the cons should also matter when deciding if you are purchasing the car or you are going for car rental, since both involve the use of money and the lifestyle you need you should go for that which offers a good deal.