The old car strikes and it must be a new one. But where do you get the money from?
People in this situation can choose between financing or leasing a new car. But which fits better to the respective life situation and which possibility is the more favorable?
Here only helps calculate yourself and compare well the available offers.
Anyone who has ever bought a new car knows this situation. The various offers are promoted very advantageous and it is difficult to find out the actual advantages and disadvantages.
But what makes these differences between the two models actually?
To lease a car
Actually means that a leasing agreement or a so-called atypical lease is negotiated with the lessor, in which the “buyer” can use the vehicle for a certain time against payment.
The equipment and the make of the car, the lessee so the “buyer” can usually determine themselves.
By paying the monthly installment, the car is financed for the lessor up to a certain residual value.
The advantage of leasing contracts is, for example, the often coupled with service contract.
This means that if the vehicle is destroyed by the lessee through no fault of his own and needs to be repaired, this is usually borne by the lessor. Maintenance is also included in such contracts.
Mostly, the monthly installments that have to be paid for the car are also lower than normal financing.
The problems often arise with leasing contracts only at the end of the contract.
For the customer, it is therefore very important not to conclude a residual value lease, as it guarantees the residual value of the car in this variant. With a lower residual value, caused for example by price reduction by new successor models or the like, he has to pay the difference to the lessor.
Better there are the mileage leasing contracts, in which a certain mileage of the vehicle is agreed. If more has been paid during the rental period additional payments have to be made, but less has been driven, certain amounts may be credited by the lessor.
For all leases, however, if the vehicle is damaged by the lessee’s fault, for example with scratches and dents or spots on the seats that are no longer going out, he must compensate the lessor for the damage.
At the end of the leasing period, the lessee can then decide whether or not to take over the car at the residual value. If he decides he will be without a car. Here, however, the advantage is that the lessee can lease a new car at regular intervals.
At a car finance
The buyer selects a car and the appropriate equipment and is after the financing of the owner of the car. With this model, the computational work is at the beginning and not at the end like the leasing model. It is important to find the right bank to receive tailor-made financing.
The financing of the manufacturer bank often has a cheaper interest rate than the car buyer’s house bank. However, it may make sense to act as a bar buyer to the dealership to get a better price for the car.
This price difference should be so great that the house bank’s higher interest rates do not completely consume the savings.
A disadvantage for the financing are in contrast to leasing higher monthly costs for the vehicle. Also the maintenance and repairs have to be paid by yourself. The big advantage is that at the end of the financing, the car passes into the possession of the buyer, no matter how many miles he has driven it, or if it has scratches or stains somewhere.
If you look at the total running time of the car and the costs are distributed over it is considered over the entire period often cheaper than with a lease.
Leasing and financing both have their advantages and disadvantages.
When choosing the appropriate model, it is important to clarify for yourself beforehand:
- Whether you want to buy property
- Whether it should be a new car at regular intervals.
- What are the monthly installments for a car?
- Is it important that maintenance and repair does not have to be paid by yourself or is there enough money in the budget for a possible repair of the vehicle?
- How long should the car be used and how much is driven? (For frequent travelers leasing contracts with mileage limitation are rather unfavorable.)
All in all, the financing model, despite the initially higher costs, can claim more plus points than the leasing model. The best decision for you, but you certainly with a pro and con list, in which the personal living conditions are included.
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