You can have a car for yourself without actually buying it. Yes, that is true.
With the growing automobile market, a variety of demands are presented by the customers. And so with the pleasing policy, the figurehead of this sector decided to introduce the leasing car option. But this ain’t a charity done, indeed a very smart move.
The automobile people were quick to recognize ‘the leasing car demand ’ and established a lucrative deal for them. However, the topic of the leasing market is not that short.
What Is the Difference Between Leasing and Buying a Car?
Buying a car is a long-standing process, known to everyone and used by numerous people around the world. Buying is directly associated with owning. You pay the standard price, either the whole in a down payment or through a car loan. EMIs get structured for every month in the car loan alternative.
Leasing is renting. Instead of owning it, you borrow a car for a certain fixed period with the condition of payment of monthly lease charges. You do not own a car in this. The process is very similar to how tenants use the owners’ houses. They pay and they live.
Lease a Car if You Want to Have a New Car, Constantly
In the scenario where one easily gets bored with the same car and intends to change it frequently, leasing a car is a better option than buying it. Leasing rates are increasing in nature. Rental rates are smaller for shorter periods and gradually the amount becomes a big deal to pay. So, the wiser brain imparts the knowledge to return your leased car in a few years and get a new one.
The other pro of leasing a car is that you can constantly have a new car as the next time when you will release it even if you decide to go for the same model, you’ll be receiving a newer and nicer version of the same car. Isn’t that amazing?
Lease a Car if Your EMIs is Bothering You
For using a leased car, you are required to pay a monthly amount. And since EMIs are also a monthly duty, comparing both becomes a judicious activity.
An EMI also includes the money dedicated to paying the interest on the loan. This interest money is not the actual value of your car. And hence you end up paying for more than what you bought.
Leased charges are comparatively lower than the EMIs. And it also includes all the maintenance expenses barring the fuel demand. It also does not place any type of burden on the payer. If anytime your budget is not in tandem with the monthly charge, just return the car and the job will be done.
Lease a Car if You Are Too Lazy for Maintaining and Servicing
Leased cars generally come up with a warranty period of up to three years. This warranty period becomes more than enough due to the above-mentioned reasons. While signing a personal agreement, you can always opt for the option where the company is liable to look out for car maintenance. And in this way, the maintenance expenses get added to your monthly charges.
But, the efforts get saved.
Lease a Car if You Don’t Want Any Resale Worries
Unlike the car owners, you are not supposed to be brooding about the residual value of your car.
All that has to be done in the end time is to simply drive the car back to the company. Although, any wear and tear or damages found during the retaining period have to be compensated by you.
But that’s all.
Lease a Car for Tax Benefits
If you are looking for a business avenue via your car, leasing becomes the best option. A leased car will serve you with more tax write-offs than any variable. As the depreciation and the financing costs get deducted as it is included in your monthly lease payments. This will leverage you with extra tax benefits.
And Once You Lease a Car, Insure It
While many will wonder if there is any insurance for leased cars. It’s time for you to know the world.
A car in use, owned anyhow, is titled for security. After all, a car is just a machine and is not stronger than its limitations. A variety of car insurances are there depending on the background and requirement of your purchase. From insurance for financed cars to leased cars, everything is there.
Another question that often pops up is about the difference between leased and financed cars insurance. And the questions don’t end there. But the important part is, that the answers aren’t very complicated. A little bit of research could make things easier for you. Or if you don’t even want to do that, you can ask all such questions to the insurance agent you’re in touch with. Once the insurance is done, it will always take care of the uncertain demands of the car.
Leased cars do offer certain benefits and so do financed cars. The choice between the two depends on your requirement and motive.