My Review

Cars are among the most expensive, we will make purchases. It is therefore understandable that consumers are willing to make the right choice in deciding how to pay for a new car, whether to buy or lease.

When deciding on the best solution for your particular situation, it really depends on your lifestyle and priorities. Because the purchase of a single examination, which must take in a much broader. In fact, the ideal choice for one person may be completely wrong for another.

First, we will examine how different a lease financing. When you lease a vehicle, in fact you pay for your use “of the car. It is not for you. Instead, you get the exclusive right to use the car for a predetermined period. Basically, you pay for an equivalent amount of the car that you “use”. Leasing has a number of onerous restrictions, and not the least is that it is very difficult to get out or transfer of a lease. Typically, once you are in a lease, you are in it for the entire term.

Funding, on the other hand, gives you full ownership to do with the car you please. There are no restrictions on how you use or how long you keep a car during your funding.

So, is there a way to simplify the debate to decide which is the best? Absolutely: When you are right, lease versus purchase debate is about the amount you want to pay and when.

Leasing short-term costs are still much lower than the purchase. For exactly the same car, at the same price, the same repayment period, and even cash down payment of a monthly rental ranging from 30% -60% lower than loan payments. And that’s even if you compare with a low down payment or low-interest loans.

In the medium term, the cost of renting a car is equivalent to the cost of purchase, if you decide to sell a car at the end of the loan and car rental equivalent returned at the end of the location. The financing is generally less taxes, less the total amount of financing costs, and this parity is based on a vehicle purchased ensuring full market value when sold or exchanged at the end of the loan (which is certainly not always the case). Of course, with leasing you get a substantially lower monthly payment, the rescue with which you are free to spend or invest on other expenses.

Finally, the long-term cost of leasing is always greater than the cost of financing a car if a buyer maintains a vehicle for years after the end of the loan. That’s because the cost is spread over a longer period, with all prepaid expenses.

So rent or buy?

If you want lower monthly payments, like having a car that has safety features and the latest is still under warranty, do not like the trading and selling of used cars, do not care about the property of fairness, proper maintenance of your vehicle, and are willing to pay more in the long run to get these benefits, then a rental car that suits you best.

If you do not mind monthly payments higher, some prefer to build or trade in the resale value, are more comfortable with-the right to own property, such as the repayment of your loan to be exempt from payment for a certain Meanwhile, not afraid of Inattendue cost of repairs after the warranty has expired, harder than the average miles, prefer to drive your car for many years to spread out the costs, as to customize your cars, and do not the risk of surprise rental costs-end, then an Automobile financing is the way to go.

Ultimately, the question becomes, do you want more car for less monthly fee, or do you prefer the flexibility of being able to sell vehicles at your discretion. The choice is yours.