Understanding what is leasing car:
Earlier days, anybody who wanted to own a car, purchasing was the only option. But over the years, with increase in demand for owning a car has made the manufacturers of cars and other financial agencies to come up with the concept called Lease. With leasing, you need not pay the whole amount to own a car. You can make a deposit for the car you wish to own and keep paying instalments depending upon how long you wish to own the car. This concept from its introduction has made quite a stir in the financial markets and has attracted many individuals to opt for leasing. However, though lease cars have been quite a hit, it cannot be said that the trend of purchasing of cars has gone down. Also, it is quite difficult to say whether leasing is better or purchasing because both the models have advantages and disadvantages and at the end of the day it is the individual’s choice to decide which model suits his requirement
Tips to choose while leasing cars or purchasing cars:
It’s a myth that leasing cars has reduced the purchase of cars. Trade analyst and finance firms back the point as they believe that with the introduction of leasing, there is just an addition in different style of owning a car. In addition they also emphasise that whether to lease a car or to buy a car is the individual’s decision based on the personal and financial situation of that person. However, here are some points that would help you to choose in what conditions you should choose lease or purchase:
Your financial status is very important. If you have a stable employment and can afford to shell a big amount in a go and the sense of ownership matters to you, then you can definitely opt for purchasing the vehicle than leasing. Leasing is beneficial for those who desire to have a car but can pay money in small junks.
What is the projected usage of the vehicle also matters, because when you take a vehicle on lease, the lease deal has a certain limit on the usage which crossed would be penalised. Thus, if you plan to use the car extensively then be assured that you would definitely cross the wear and tear standards of the car in the lease contract. Thus, in such situation it is better to buy the vehicle.
Is car a fashion statement for your or a long term asset??? In other words if you are a car frolic then its better you Short Term Lease Car because buying would give less returns. Here you go: http://www.short-term-lease.co.uk. If you are looking at keeping the car for a long term like more than 2 years it’s better to purchase.
So, next time you think of owning a vehicle first understand your purpose and need of the vehicle and also understand the various options available under both plans. Then accordingly you will be in a position to decide whether leasing would be beneficial or purchasing.