Having your own car means practicality and comfort to go anywhere you want, but it can also become a concern and major source of spending money than is initially imagined. That is why, often, a primordial question arises: after all, it is better to buy or lease a car? The answer may not be that simple and depends on the usage aspects.
Renting a car offers some unique benefits such as the ability to pay a small percentage of the initial value.
Buying a car is not something you do every day, obviously. It is an extremely important decision and a milestone in someone’s life. The process of financing to buy a car is much like any other personal loan, which evaluates your capability to repay the loan. In this process, your credit history and a year payment plan is not only important, but also determinant.
Buying a car using a car loan may be the best option for you if:
- • Normally keep your cars for more than five years
- • You are aware of getting the most out of your money
- • Have the cash flow to pay a car loan totally in the next five years.
Before leaving for the definition, it is essential to observe the details involved. Having a car, for example, involves maintenance costs. You need to pay for fuel, insurance, taxes, just to give some examples. In other words, you need to do the math and write down the costs that would be generated over a month.
But even with the amounts involved, there is a specific situation – and fairly common – when buying a car is still the best way out: when the use occurs daily.
On the other hand, if you can use public transport or alternative means in everyday life, without that disrupt your routine, the leasing costs may decrease and compensate for the upkeep with the car itself. To make sure you make the best choice, the trick is to put everything on think about every cost related to each case and compare them.
There are two situations where leasing can compensate. One is when you need a vehicle for a specific activity that lasts a few days. The example may be a change or even a conference out of your town.
The same applies when the use is not as frequent. In the case of travel, you can lease a car and go to the city of your destination or even use a plane and then rent a car just to make the shift between the sights. At such times, it is worth researching the rate charged in the destination city. Also be sure to consider that gasoline will still be an expense and its extra fees.