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Cars: Lease or Buy?

There are certainly no denying the fact that there are several benefits to leasing a care but before analyzing them we need to find out what care leasing is all about. Before you lease a car you will have to pay a down payment which will be small percentage of the total cost of the vehicle. The next step is to decide the duration of the lease after which the monthly payment will be determined. The calculation of the total payable amount is very simple and it is the difference in the car’s current value and its expected value at the end of the lease period. So your monthly payment is the sum of the interest and the total amount divided over the entire duration of the lease. If your credit rating is good it will not take you more than two days to get your new car. Once the lease expires you can choose to buy the car or to just hand in the keys and walk away.

Advantages:

Leasing is a perfect option for people who want to drive a brand new car for a really low price. Since people generally opt for the one year lease it means that they can drive in a new car every year. Since most new models come out in the market in fall the holiday season is the perfect time to get a new car.

Most establishments that deal with auto leasing have the more upscale models which are always brand new.

One of the problems if owning a car is that you have to take care of all the expenditure involved in maintaining it but when you lease a car it is covered by a warranty because it is brand new. So if you meet with a minor accident the dealership will take care of all the structural damage

The monthly payment is significantly lower, almost 30-60 percent less than what you would normally pay if you were to own the car. You can also trade in your old vehicle to get a reduction in the down payment or the monthly payment

Leasing a car is considerably hassle free as compared to owning a used car which would involve not only buying it but also selling it eventually, plus the insurance is taken care of by the dealer when you lease a car.

When you lease a car you are also offered free gap protection which covers you in case of loss due to accident or theft.

Disadvantages:

Since you dont actually own the car you will have nothing to show for the money that you pay in monthly and initial payments.

If you own a car you can sell it anytime you want of course you will not make the same amount that you spent for it but something is better than nothing.

Not everybody is eligible for car leasing and you will need to check with the dealership beforehand

Leased cars come with fixed mileage which may pose a problem. When you sign the lease you accept the condition that you agree to only use the car for a fixed number of miles each month and you will have to pay extra for each mile above this limit To read more about this and virtual currency then visit the link in this sentence.

Cars: Lease or Buy?

Car leasing is definitely a lucrative option but before we understand the advantage lets take a look at what car leasing is. Before you lease a car you will have to pay a down payment which will be small percentage of the total cost of the vehicle. The next step is to decide the duration of the lease after which the monthly payment will be determined. The calculation of the total payable amount is very simple and it is the difference in the car’s current value and its expected value at the end of the lease period. This amount is equally divided over the lease period and added to the monthly interest. Normally it shouldn’t take you more than two days to drive away in your new car. What you do at the end of the lease is entirely at your discretion and you can either keep the car buy paying the residual value or return the vehicle.

Advantages:

Leasing is a perfect option for people who want to drive a brand new car for a really low price. Most people rarely go for lease durations that exceed one year which means that you can drive around in the latest models each year. Since most new models come out in the market in fall the holiday season is the perfect time to get a new car.

If you lease a car you can opt for the really upscale models that are brand new.

When you buy a car you have to be ready to incur all the expenditure related to the upkeep of the vehicle but since leased cars are brand new they are under the manufacturers warranty. So if you meet with a minor accident the dealership will take care of all the structural damage

The monthly payment is significantly lower, almost 30-60 percent less than what you would normally pay if you were to own the car. If you want to negotiate further on the amount you have to pay as the down payment or even the monthly payment you should consider trading your old car for the leased vehicle

Normally you would have to go through the rut of buying a used car and then selling it but not only is this hassle eliminated when you lease a car you also dont have to worry about the insurance because the dealer handles it for you.

Finally, most leased cars come with free gap protection in case of car theft or total loss due to an accident

Disadvantages:

One of the problems with a leased car is that you cannot count it towards your assets and so essentially you dont get a product in return for your investment.

You will of course have to incur a loss over the buying price when you sell an owned car but at least the balance is yours.

Before you lease a car you will have to contact the dealership to determine if you are eligible for a car lease

However, the biggest issue with car leasing is the fixed mileage. When you sign the lease you accept the condition that you agree to only use the car for a fixed number of miles each month and you will have to pay extra for each mile above this limit To read more about this and virtual currency then visit the link in this sentence.

President Obama’s plans to reduce carbon emissions by increasing fuel efficiency standards in America have sparked a heated debate. On the one hand reduced fuel consumption means less dangerous greenhouse gas emissions, and will undoubtedly contribute to a cleaner environment. On the other it could cause further problems for the US car industry, which is already struggling with the recession.

Allowing each state to impose its own standards for fuel efficiency will encourage limited carbon emissions and will be a long overdue first step by the US towards dealing with climate change. This issue was largely ignored by the Bush administration, though even fellow republicans like California’s governor Arnold Schwarzenegger have been campaigning for these changes for a long time.

This means in the future all the manufacturers, including prestige brands like Audi, Mereceds and BMW – all the names we’ve been told to aspire to – will be forced to move towards designing greener cars and new fuel technologies.One thing’s for sure, even with government money these new cars won’t be cheap.  So perhaps the more expensive brands like Audi may even have to reconsider their marketing strategies and think about introducing other options for buyers such as offering an Audi lease agreement as an alternative to buying outright.

Buyers who are strapped for cash will also be faced with a difficult decision. It’s easier than ever to find a bargain in the current market, with the slump in sales leading to marked reductions in the cost of used as well as new vehicles. However, if the UK government were to follow in America’s footsteps drivers could be faced with high taxes for carbon emissions if they choose the wrong car now.

Perhaps the answer is not to buy that new Merc, or Beamer or Roller (if  those are your dream cars), but instead enter a Mercedes lease agreement with the option of renewing and upgrading your vehicle in the future. You’d get the best of both worlds – your dream car now at a fixed and predictable monthly price, usually much less than taking out a loan (if you can find any institution willing to lend you anything!) and the possibility of being one of the first to save money if new technologies are introduced in the future!

In these times of recession and credit crunch you’ve probably had to cut back on spending and tighten your purse strings a bit. You can’t just buy whatever you want anymore. You have a new rule number 1 – anything you can survive without should stay in the shops. You may not be allowing yourself the small luxuries anymore, let alone a big purchase like a new car. And it’s not just you.

The UK car industry has seen a huge fall in sales over the last few months, to the extent that the government has announced a plan to provide financial support to keep the business afloat through the hard times. But for now, car prices have slipped lower than they have been in a long time.

Of course many people would never consider an investment like a new car when money is so tight. Even considering the reduced prices it’s still a huge purchase, and one which many would be unwilling or unable to commit to. But it’s possible that the change in circumstances for the car industry could work in our favour. I’m not talking about buying a car outright, or choosing the cheapest (and quite possibly also the worst) car in the showroom. And I’m not talking about taking advantage of the price slump to trawl the used car market.

There are other options. If, for example, a new Merc is the car of your dreams, there are a number of companies offering very reasonable Mercedes lease or contract hire deals online, letting you choose from the latest new models for a relatively small monthly fee. And the broken-down payments are far from the only benefits you’d get – there are loads of reasons why leasing your new car could be a far better choice, especially when money is tight.

Unlike with a brand new car, you don’t lose out when a couple of years down the line the car suddenly isn’t worth half what you paid for it. Most of these deals are arranged around your projected usage of the car, so they take wear and tear into account and when the contract’s up you can simply trade it in for a newer model. Think of it like investing in a contract phone instead of pay as you go – many deals will even include servicing and road tax in the monthly cost, leaving you with less to worry about.

The best thing about leasing is that if you choose a more expensive car you can often get a better deal. Dreamed about owning the new Audi Q7 but know you couldn’t afford it? You could choose an Audi lease agreement that lets you drive away in it immediately, and you wouldn’t have to worry about whether you could afford the full cost because the car itself is your collateral. You could happily drive away in your shiny new car, the envy of all your mates, and safe in the knowledge that everything is covered – and if you feel a bit smug, well no one will hold it against you.