Leasing or buying a car is a matter of personal preference. Some buyers base the decision based on emotions, while others consider the price involved in both these options. To make the right decision, it is required to learn about the major differences between both these approaches.
If you know the ins and outs of car leasing, then there are hardly any concerns about accepting a bad deal. On the other hand, if you are not an expert, then there are few things you need to consider and ask the dealer the right questions to ensure you get a suitable deal. It doesn’t matter if you desire to get the expensive four-wheelers for fewer dollars than paying the considerable monthly payment on an auto loan.
If you ignore a tiny detail, when you lease a car the consequences can turn out to be bad. Car leasing needs knowledge and familiarity with every small aspect. Some avoidable car leasing mistakes you must know and thus play safe.
Leasing a car sounds enticing because the monthly cost of a purchased car is nearly double. However, there is more than the monthly payment you need to think about while determining the real acquisition cost of a new car. Leasing does not reduce the cost, when you think of low monthly payments, but adds up to thousands spent on a car you don’t own in the end.
Leasing a car means you are borrowing a car rather than buying it outright. It is for an agreed time period. Some people even get an option to buy the car after the lease period ends. The difference between financing and leasing is in the former you purchase and own the vehicle. In the latter, you don’t own the car, but need to return it, unless your agreement includes an option to buy the car after the lease period ends.
When you buy a car the first thing to consider is financing. If you are buying a car on a lease, then determine whether you approach a leasing broker or the dealership. A leasing broker has access to different funders and models, which means cheap deals. On the other hand, a dealership gives the benefit of a test drive in their forecourt. Which is better – dealership or lease broker?