The Smarter Finance Company has had years of experience helping customers to acquire financing for their new or used cars and we are well versed with the different ways to go about it. One of the biggest questions that our customers have is whether to take a lease on a car or buy it outright. There seems to be pros and cons on both options though, so we thought that we would help you out by analysing the differences here!
Leasing a Car
When it comes to leasing a car, you are looking at renting a car for your personal use, without the actual ownership. This means that there is an actual owner who may or may not impost certain requirements on you to use the car. Perhaps you are required to use a certain gas type, or regular maintenance and restrictions to how you may use the car. You are also liable for damages to the car that may happen during your possession.
While there may be some inflexibilities, you are definitely able to choose a wider range of cars without having to worry about upfront monetary costs. Even your monthly rental rates may not be as expensive as actual car financing costs! At the same time, you have a chance to experience a wider range of vehicles because you can swap out for a new car at the end of lease periods for anything else that may catch your eye.
Being left without a car at the end of the lease period may be an inconvenience, but for people who do not need a car for a long period of time may find this option perfect for their requirements.
Buying a Car
The obvious problem with buying a car, is that not everybody has the money to just head out there and purchase one right off the bat. There are administrative requirements for processing a car financing plan and that may be a bit tedious unless you have the right car financing company helping you with the documentation. At the same time, the loan may lock you in for a fairly long period of repayments until the entire cost of the car can be paid up.
Besides that, it seems like there are no other drawbacks. You can dictate when you want to make repairs, you can use whatever brand fuel or cleaning products, you aren’t restricted from driving to any particular locations, you can even smoke in your own car if you wanted to! You shouldn’t smoke, because smoking is bad for you of course; but you could! And that’s the benefit of owning your own vehicle!
There is no real answer to which option is the ultimate best choice when it comes to financing a car, but the final decision lies in how you feel with the option you’ve chosen. Should one way suit you more than another, then stick with that – you need to be able to service your payments and maintain your vehicle the way you would like, knowing that the method has been configured to your preference. If you find that somewhere along the way, you would prefer to try the other side of the coin, then that option will still be available too!
So don’t fret too much when it comes to making this decision. If you need reassurance, feel free to check with our financial consultants, we would be happy to analyse the question in greater detail and with respect to your individual circumstances.