Before you go for buying a new vehicle, think about saving some money on this occasion.
If you have a working common sense, then you can save the estimated amount by leasing cars for long-term. This is just like purchasing.
In this article, we are going to show you the comparison between the two options. It is always your decision to choose one. But for a financial aid, let’s compare them on the same platform.
For an employee, the merit of purchasing a car is not much. If you can lease the vehicle for long term, the problem will diminish in a second.
The first thing is the duration. When you are intending to use the transportation for several years, there is no need of wasting the money in buying. Leasing is a better path in this type of situation. The efficient solution for people like us is to lease a vehicle. New car can bring mind, peace, but not useful in the long run. If you have an allergy with the car loan, then the long term agreement is really helpful for you.
Today, there are many people who can not afford to own a car because of the initial investment and the maintenance and fuel costs involved. That is why, it is increasingly common to find people who decide to sell their vehicle and start using alternatives, such as public transport, or the various options for car sharing.
However, despite some liberalization of the sector, the most common disjunction remains very clear: what is better to rent a car or have it owned?
And as much as there are innovative alternatives to the acquisition and rental of cars, many of these are only available in large urban centers, are subject to a fleet and availability rather small, And even in these cities there are differences between the areas most frequented by users and the less. That is the reason that the renting companies have not been totally out of place for these new features.
The trend has always played in favor of the purchase, but really the option of renting has growing reception among Spanish consumers. And is that the lack of purchasing power to get a car has caused many have to look for other solutions. Some of the advantages of this method are very clear:
• Monthly, quarterly or annual fees
• Zero red tape
• Car insurance
• No expenses for checks and breakdowns
• Replacement car
• Management of traffic fines
• Possibility of new contract with car renewal
18% of the money of a home goes in the purchase of the car. However, there are much cheaper options that rationalize vehicle use and consumption. Sharing a tourism through a car-sharing company or dividing the costs of buying and using are the new usage habits brought by the recession.
The car is the second most important purchase in the life of a family after the house, since it takes almost a fifth of the budget a year. If the house is rented more and more because it is impossible to pay, the vehicle goes the same way.
For those who drive less than 1,000 miles a month, “the use of the private vehicle is irrational or an expensive treat.” Therefore, it proposes other alternatives that “besides saving money are more sustainable”.
What options are there? The answer is a gibberish of Anglo-Saxon terms: car sharing, ride sharing and renting. Three ways to drive without being the owner of the car. The car sharing or car multiuser allows access to a car using a smart card with payment only for the hours that is used. This type of service is aimed at drivers who live in the same neighborhood and do not reach 1,000 kilometers per month.
There are other ways to use the car. The ride sharing consists of several people (drivers and passengers) agree to share route and travel expenses. This allows drivers to save up to 75% of travel costs, while passengers can access very competitive travel offers for all types of journeys: daily to work or university or on bridges and weekends.
Lastly, the renting car remains as a long-term rental option. In exchange for a monthly fee, this alternative gives the right to use and enjoy a car during the established term and includes a series of services, such as insurance, repairs, tax payment and replacement vehicles. The main advantage is the possibility of enjoying the vehicle without having to make an important outlay at the beginning. In this way, renting provides greater liquidity.
Another much more popular option is carsharing which is no other than simple short-term rental, for example for the weekend. This option unlike long-term renting (which incidentally comes out more or less the same in terms of costs as the property) allows you to enjoy different car models depending on your need.
In this consumer lifestyle, we want to upgrade and get newer version of everything.
A particular brand of car is upgraded after a cycle of a few years. If you want to have your own car, the process will be lengthier for you. Because first of all, you will need to sell the old one. This will give you the chance to buy another. But when you have no liability of selling, you can just update the leasing agreement and upgrade your vehicle to a newer one. You will not need to think about any extra charges. The company will take care of that.
The value of anything is downward sloping. So, when you are using a car in long-term leasing agreement, you need to just pay the value of the agreement. The depreciation will not affect you a bit with this little but effective trick.
The monthly payment of car leasing is affordable even for lower-middle class employee.
Around 50-55% of the total valuation will be charged while you are using the car for yourself or for your business. Purchasing a car includes down payment and other hidden charges. The tension rises when the EMI letters knock at the door.
The warranty is secured with a car leasing agreement. So, it is better to lease a car than purchasing one for anyone.