Owning a Car Instead of Leasing It

Subject: Transportation
Pages: 2
Words: 296
Reading time:
< 1 min

Leasing or renting a car can be attractive to some consumers due to the fact that lease payments are usually lower than financing a similar one. In addition, leasing gives more financial control to a person by allowing him use a car for pre-determined period. However, the buyer’s period mostly depends on the loan conditions.

Explanation:

The lease has several aspects that make it interesting when buying a new car and as a matter of fact, the total payment is lower than when buying a new car. The rental payment is also much lower than the loan and it is much easier to get a lease than a whole car loan. The cost of servicing a car is generally close to zero, since a three-year warranty usually fits into the lease term. The main reason for three-year period is appealing is the fact that the most significant part of a car’s value deprecation takes place during its first three years. Incidentally, three-year leases are recommended as the most beneficial for the lessor or the person who rents the car.

In fact, the total rental payment in many companies is lower than the purchase of vehicles in the property. Having rented a car, people can use it when it is really necessary, that is, the vehicle will not stand without the need for a garage. In addition, the contract specifies the lease term that one needs. Also, many will no longer have to worry about the parking lot, because at night a person might be able to leave it with a leasing company. Another reason for renting is that customers do not need to spend money on major repairs and regular maintenance because all these costs will be borne by the lessor.