Buying vs Leasing a car
Whilst having a car does make life easier, it is the decision of whether you should buy or lease the car that may be a bit difficult. Before you make that decision, you should consider the pros and cons of both options.
Here are some facts about buying and leasing a car.
A lease is defined as a contract that outlines the terms under which an individual rents an asset from the owner, in this case, a car. The lease terms may vary but usually, you’ll expect to find the following information:
Monthly costs- A breakdown of your monthly installments.
- Costs regarding early termination.
Length of the lease- usually for a period of 36-48 months.
Restrictions- Modifying or enhancing your car.
- Mileage restrictions.
- Using OEM/non-OEM parts.
Additional fees- Fees due to penalties.
- Interest, if applicable.
Car maintenance- The warranty and service plan on the car.
- What you should do to ensure the car is well maintained.
If you enjoy the feel of a different car after every few years, leasing a car may be a better option for you.
However, you will not be able to build any equity on the car as there is no ownership.
Buying a car, on the other hand, can be a complicated process but once you get through that, you can rest easy knowing that you are the sole owner of a brand-new car. Whether you decide you would like to trade it in at a later stage or keep it and buy another car, the decision is entirely up to you.
That is one of the main advantages of buying a car, you get to make the decisions. Whether you would want to modify the car or just keep it standard. There are no limitations to what you can do to your car and, what you can use it for.
You are also able to drive a new car after every few years by trading in your current car or selling it to purchase another.
By purchasing a new car, you can also build up your credit to increase your chances of getting a better deal on your next finance.
The finance period is longer compared to leasing a car but isn’t it worth it to pay for an extra 24-36 months for the car to be officially owned by you?
One of the main concerns for car buyers is the residual. It is nonexistent when leasing a car but a factor many car buyers consider when applying for vehicle finance. There are ways in which to pay it off, however, it is possible to finance a vehicle without a balloon payment. This will largely depend on your credit or if you do happen to have a deposit, this could help as well.
At Carter, we are able to assist if you are looking to own your brand-new car. We are here to make this process easy and hassle-free for you and get you the best deal possible!
If you are interested, all you have to do is choose the car and we’ll assist with the rest.
We have a wide range of Renault, Mitsubishi, Suzuki, and used cars available that you can view at www.heycarter.co.za.
Request a quote and we will get in touch with you to help get you into your new car!
Carter, your car buying partner! 😊
