Lease vs. Financing your Car
These days, financial institutions are coming up with innovative ways for consumers to get access to personal transport. These days, when you have to purchase a new car, you have to select between the two – finance and lease. As a result, you don’t know which option to choose, as they come with different sets of advantages and disadvantages. Today, let’s take a look to find out which one is the better option.
Lease of finance – Which one should you choose?
When you lease a vehicle, one huge disadvantage is that you are not the owner of the automobile. Due to this reason, you must return the car to the business, at the end of the contract. Also, there are restrictions on how many miles you can cover annually. While this may not concern those who rarely use their vehicles, you will find it limiting, especially when this car is your main mode of transport.
If you go beyond these restrictions, you will have to pay the business a fine. Also, you will be held responsible for all the wear and tear damage which takes place during the duration of the contract. While you have the option to customize the vehicle, you have to return it the same way you got it from the business. You have to bear the costs if the modifications damage the automobile.
If you want to break away from the contract, it will prove to be an expensive affair. You will have to pay fees which are equal to how much you would pay if you were to stick with the agreement.
When you choose to finance your car, you never have to deal with these types of problems. You can always refinance the auto loan if you are finding it difficult to repay the loan. At the same time, you have the option of trading in your current car and getting a new one.
From a financial perspective, it’s better to opt for credit, rather than lease, as you can save considerable amounts of money. Always weigh your options before you approach a lender for a car loan!