Many people in their day to day life always suffer from the dilemma of whether it is better to buy a car or rent it, either for maintenance, use, or savings.
Today the car leasing market has become very common among people, due to its large car leasing deals, because you always have to look for an economy car leasing, and most agencies offer them. Some differences between buying and renting can be:
Property
Lease: You do not own the vehicle. You can use it, but you must return it at the end of the lease unless you decide to buy it.
Purchase: You are the owner of the vehicle. You can keep it at the end of the financing period.
Upfront costs
Lease: Upfront costs may include the first monthly installment, a refundable security deposit, capitalized cost reduction (similar to the down payment), taxes, registration fees, etc.
Purchase: Up-front costs include the cash price or a down payment, taxes, registration and other fees, and other surcharges.
Monthly fee
Lease: The monthly installments of a car leasing are generally lower than those of a loan since only the vehicle’s depreciation is paid for the contract’s duration, plus rent (similar to interest), taxes, and duties.
Purchase: The monthly payments of a loan are generally higher than those of a lease because the full purchase price of the vehicle is paid, plus interest and other financial expenses, taxes, and duties.
Premature termination
Leasing: You are responsible for paying all premature termination expenses.
Purchase: If you decide to cancel the loan prematurely, you are responsible for the debt settlement amount.
Return of the vehicle
Lease: At the end of the contract, you can return the vehicle paying the expenses for the lease’s termination, without further obligation.
Purchase: When you decide to exchange the vehicle, you must sell it or deliver it as part of the payment.
Miles traveled
Leasing: Most leases limit the number of miles you can drive (often between 12,000 and 15,000 per year). You can negotiate a higher travel limit and pay a higher monthly fee. You may have to pay surcharges if you exceed these limits when returning the vehicle.
Purchase: You can drive as many miles as you want, although the more miles the vehicle has, the lower it is resale or delivery value as part of the payment.
Termination of the contract
Lease: At the end of the lease (generally between 2 to 4 years in length), you may have to pay another fee for the vehicle’s purchase or lease another.
Purchase: At the end of the loan term (generally between 4 to 6 years), you will have no more installments.

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