Lease a Car or Buy a Car Matter of Consideration for Buyers

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You had always a dream of driving a personal car, but due to limited funds you have never been able to drive your dream car to your home. Although, there are various alluring financial schemes offered by car dealers in the current scenario, which facilitate the first time car buyers to buy a car for their drive at first instance. But, as in that situation you will be required to pay a certain percentage of interest on the car purchased by you on finance, you might feel that deal not suitable for you go with, due to the vast responsibilities on your shoulder.

So, now the question arises that, does it mean that car lovers like you and me, with limited funds should be restricted from buying a car for their use? If you had asked this question from me few years back, definitely I would have been in dilemma to answer your question. Because, till that time the only option available for buying a beloved car by the buyers with limited fund was to buy it on installments. But, as in that scenario you had to pay monthly installment along with interest to your dealer, it would have been an expensive deal for you.

Car Leasing: A boon for car enthusiasts

Interestingly, in todays scenario you can make your dream of having a personal car come true, by leasing it. This might be surprising for you, but in recent years leasing a car has emerged as the latest option in front of car buyers, that facilitates them to drive a car for a specified period and pay a fixed amount for driving it every month till the end of that period. The facility of leasing has emerged as a boon for car lovers who cannot afford to pay the cost of the car in cash or who find it difficult to pay an additional amount in the form of interest rate for buying a car on installments.

Which is better option: Car leasing or Car buying

But, this has given a birth to a controversy that is leasing a car the best option for driving a new car, because here also the buyer is entitled to pay a fixed amount to the dealer every month for fixed period of months, as he has to do while buying a car through financing or buying a cash.

At first instance, leasing a car seems to be quite compatible as compared to buying a car in cash because if you pay the cost of the car in cash it might push you towards additional burden on your pocket and same in case if you buy it on the installment. But, when you lease a car you pay the money only for driving it and that also only for fixed duration varying from 12 months to 48 months. Moreover, when you lease a car you are blessed with an option of driving a new car of your choice after expiry of your lease contract.

This can be regarded as the fruitful deal for the car lovers who prefer to try their hands on every new car that is launched in market with contemporary updated features. Moving ahead if you argue that you can sell your existing car to buy the technically updated car in the future, but in that scenario also you will not be able to get the substantial value of your old car and in that also you will be required to add additional funds from your pocket.

From that point of view, it can be said that leasing a car is the best option to drive a new car rather than buying it with cash or in installments. Especially in the current scenario when the prices of all products are hiking at jet dynamic speed leasing a car makes a sense.

Anyhow, whether you wish to buy a car or lease a car is mainly the matter of your choice that whether you wish to continue with the same for long years or wish to keep on changing your existing car at regular intervals. Depending upon your preferences you can go ahead with your car.

Factors to consider while leasing a car:

Once you have decided to lease a car do not consider it as drinking a cup of coffee. Before, signing the contract with the dealer it would be better to make following factors cleared for him:

1. Ask about the down payment that you would be required to pay before signing the lease agreement with him. This will help you in understanding the hidden charges, if any, charged by the dealer and about which you had not even imagined to pay.

2. You should also ask about the annual miles that you would be allowed to drive annually. As a general practice when you lease a car you are allowed to drive 10,000 t0 15,000 miles every year. Once you exceed this limit before the expiry of lease agreement, you will be required to pay the pre-determined rate per mile as mentioned in the contract.

3. In case if already have a car to drive and you wish to lease a car by trading it, then you should calculate the amount that you would be required to pay as down payment for leasing car. Because, when you sale your existing car for a leasing company, there is relaxation in the amount of monthly payment that you will make to the leasing group.

4. If you are an amateur driver and want to learn driving perfectly before buying a car, then also you can lease a car. But in that condition it will be better for you to lease a used car so as to minimize the payment that you will be required to pay every month. However, at that time you will have to keep certain factors like the distance traveled by it should be less than 20,000 miles, should not be more than two years old, it should be VAT qualified etc. in concern.

5. Sometimes, it is seen that most of the persons wish to extend the duration of lease for more years, if you also have the same thoughts, then you should know about the process of the same from the leasing company.

Keeping the above factors in concern will help you in driving your beloved car to your home and make the eyes of your neighbors, colleagues and friends still on your new car.