Leasing A Car
Leasing a car is a good way to be able to use a car without having to pay out the full cost of buying one in one hit. So which is better? Leasing or buying? Well that depends on what you need.
If you can afford to buy a car outright then it is probably best to do that, though not many people have the funds, which is why leasing a car is a good option to consider. If you are the sort of person that likes to own a car for a long time, them your best bet is the buy one.
However, if you like to change your vehicle every few years then leasing is an excellent option to pursue. You can lease a car from car dealers, leasing companies, and some banks. Choosing the leasing option means that you are able to drive an expensive car, paying less monthly than if you were buying the same model.
When you lease a vehicle you will only pay a fraction of what the car is worth. You will pay for what you use. If you need the car for 3 years for example, you will pay for the use of the car for 3 years, plus interest.
You choose whether to make a down payment or not. If you don’t, then sales tax will be added to the monthly payments. At the end of the 3 years, which is your lease term, you can either return the vehicle or buy it by paying the remainder of its value.
A simple example of this follows,
A car is worth $125,000, the customer chooses to not to pay a down payment. They require the car for 48 months. The lease company puts on a 1.5% interest rate. The monthly payment before taxes is around $298, the payment after taxes is $340.
After 48 months the customer will have spent $16,320 with the interest included. The lease has run out so the customer can give the car back or buy it for the outstanding value which would be $108,680.
If you decide that you don’t want to lease the car before the lease runs out, you have the option of finding someone else to buy the lease from you; then they take over the monthly payments.
The other choice is to find someone to buy the car outright and pay off the remainder of the total cost. They will actually pay the leasing company whatever amount still owing while you receive no money.
This is part of the reason why leasing has become so popular for people with limited funds. It is a flexible service that gives you the freedom of owning car, without having to find the full bulk of the cost of buying one. You just have to make sure you get the best deal and rates available.
People can save a lot of money on leasing cars, but it can be intimidating walking into a meeting to negotiate a deal that is right for you and the company.
The best thing to do is be prepared, do your research on rates and offers on the internet and on the phone. Know exactly what you want, what type of car and the period of time you want it for.
Most importantly, have a good idea of the value of the car, secondhand or brand new. If you do not know the value of the car you want to lease, you may end up paying a lot more than you need to on the monthly repayments. As long as you know the value of the vehicle, and what you need as a customer you will get a good deal.
Remember, if you are not satisfied, you can just walk away.
If you can afford to buy a car outright then it is probably best to do that, though not many people have the funds, which is why leasing a car is a good option to consider. If you are the sort of person that likes to own a car for a long time, them your best bet is the buy one.
However, if you like to change your vehicle every few years then leasing is an excellent option to pursue. You can lease a car from car dealers, leasing companies, and some banks. Choosing the leasing option means that you are able to drive an expensive car, paying less monthly than if you were buying the same model.
When you lease a vehicle you will only pay a fraction of what the car is worth. You will pay for what you use. If you need the car for 3 years for example, you will pay for the use of the car for 3 years, plus interest.
You choose whether to make a down payment or not. If you don’t, then sales tax will be added to the monthly payments. At the end of the 3 years, which is your lease term, you can either return the vehicle or buy it by paying the remainder of its value.
A simple example of this follows,
A car is worth $125,000, the customer chooses to not to pay a down payment. They require the car for 48 months. The lease company puts on a 1.5% interest rate. The monthly payment before taxes is around $298, the payment after taxes is $340.
After 48 months the customer will have spent $16,320 with the interest included. The lease has run out so the customer can give the car back or buy it for the outstanding value which would be $108,680.
If you decide that you don’t want to lease the car before the lease runs out, you have the option of finding someone else to buy the lease from you; then they take over the monthly payments.
The other choice is to find someone to buy the car outright and pay off the remainder of the total cost. They will actually pay the leasing company whatever amount still owing while you receive no money.
This is part of the reason why leasing has become so popular for people with limited funds. It is a flexible service that gives you the freedom of owning car, without having to find the full bulk of the cost of buying one. You just have to make sure you get the best deal and rates available.
People can save a lot of money on leasing cars, but it can be intimidating walking into a meeting to negotiate a deal that is right for you and the company.
The best thing to do is be prepared, do your research on rates and offers on the internet and on the phone. Know exactly what you want, what type of car and the period of time you want it for.
Most importantly, have a good idea of the value of the car, secondhand or brand new. If you do not know the value of the car you want to lease, you may end up paying a lot more than you need to on the monthly repayments. As long as you know the value of the vehicle, and what you need as a customer you will get a good deal.
Remember, if you are not satisfied, you can just walk away.