Most people consider their net worth when they are tasked to decide between buying a car compared to leasing one. Though the numbers do not lie, this is only part of the story. From a purely financial point of view, you are going to be spending more on leasing compared to buying.

The monthly payments do add up to be higher than the actual buying price but likening a car lease to an LCD screen bought in instalments. Sure, you’ll be spending more in the long run, but you’ll be able to watch in high definition while you’re paying for it in parts; leasing follows the same principle. If you’re someone who wants to always be in the new, you’ll realise that choosing rental is a steal compared to buying.

In short

Leasing is a method of payment that allows people to ‘borrow’ cars from a financial company by only paying for the time that you will be using it; this includes a computation of your annual mileage and your expected lease term. Though you are limited by a few restrictions, such as going beyond your mileage limit and altering the car, you’re pretty much given free reign when it comes to negotiation with finance companies for personal car lease deals.

A lifestyle asset

One of the many reasons why you might be leasing a car is if your company requires you to take one. Having a company car ordered for you means you have to travel in it when dealing with clients. Besides showing face, a company keeping their employees in the most flattering and convenient vehicle tells a lot about how much they’re willing to show their A-game in providing a dependable service. Leasing allows business owners to have their employees have a good car for a much lower payment.

The best thing about companies sticking to this trend means that you’ll probably be driving three to five different cars depending on your stay with the company as they prioritise their ability to be up-to-date with the newest models. If trying out new cars without having to own them is something that you’re a fan of, then leasing is definitely for you.

Return as you received

Since you’ll practically be babysitting a vehicle for your company, you’re not entitled to do any alterations or modifications to the car. If you’re a pretty bad driver, you might want to save up a little or get your careful driving up to speed as you will be paying damage costs once you return the vehicle. All in all, the perks of ‘owning’ a car for a select period and returning it after to be able to contract a lease for a new one is a pretty comfortable lifestyle routine for people who don’t want to stick too much to one car. Leasing lets you make the most out of your position by paying in instalments.

Image from: Pixabay.com

Leave a Reply

Your email address will not be published. Required fields are marked *