Why You Should Choose Car Leasing Over Car BuyingPosted on: October 15, 2016, by : admin
Planning to purchase a new vehicle? There are certain things you must consider before making the transaction, first of them being whether you want to purchase a car or lease a vehicle. Isn’t it an incredibly wonderful option to make low monthly payments and own the car with a Novated lease? It gives you the flexibility of upgrading the model after the expiry of the lease without having the limitation of making a down payment outright.
I’d agree that buying the car comes with its own perks and advantages with the first being that you have no liability in case the vehicle gets damaged since you would not be charged a penalty for the damage, interior or exterior, which in itself is a great mental relief. However, if you want to fetch more from your money, leasing the car is perhaps your best bet. Look for a novated lease company and ask quotes for the best deal. You wouldn’t have to worry on the down payment or any associated costs and still own a brand new car.
Advantages of Car Leasing
While purchasing might look to you like a good option, leasing the car is the better option. Wondering what benefits does a novated lease have to offer to you? Firstly, you can opt to lease a vehicle of your choice, even one which can be beyond your affordability to purchase outright since you have to pay for it with low monthly payments. Purchasing a car on the contrary will require you to pay 20% of the cost as down payment. You’d be driving your own car, just at lower monthly payment system.
Moreover, with a car lease, you’d have the luxury of driving a brand new car every few years. Also, if you so wish to trade in the car once the contract expires, in most cases there should be no complications. One of the greatest benefits you reap of leasing the car is that the sales tax you are liable to pay is dependent only on the amount of the car or vehicle you finance. However, leasing a car may not be all bright for those who are more on the road since leased vehicles tend to come with certain miles restriction that you will be required to adhere to. In case you drive more miles than as restricted by the lease company, you will be required to pay additional charges. Also, one drawback which deters many from leasing a car is that you do not own the car once the lease period has expired.
Benefits of Purchasing a Brand New Car
For those who are often on the road or drive long distances on a routine basis, purchasing a car may be right way to go about since you will not be adhering to any restriction and no excess mileage means you don’t have to keep watching how many miles have you rode already. Also, for those who wouldn’t want to keep the car for too long, you have the liberty to sell your car whenever you want to.
However, buying a car too has its downsides. There’s a higher down payment to deal with so you’d have to keep a watch on your affordability. You would also be burdened with shouldering all additional expenditure like maintenance costs and other associated expenses which may often sum to substantial amounts specially if the warranty of your vehicle does not hold valid anymore.
Another drawback that many people overlook is that a vehicle you bought today will depreciate over time and if you have invested a major portion of your savings into the car, this may not be the most pleasing thing to experience.
It is always best to consult with a lease firm as well as watch the purchase options and make a decision that works best for your economics. If you are looking for low payment options on a monthly basis and your choice of car just ain’t suiting the down payment budget, leasing the car may be your best choice.