How Does Leasing Differ from Owning A Vehicle?
You have decided to fulfill your long-awaited dream of buying a car; However, after you’ve looked at all the features you’ve been waiting for, you’re stuck in a dilemma: buy or rent a car. To alleviate your confusion, here are some differences between leasing and owning a vehicle.
Difference between owning and leasing a vehicle:
- Ownership:
The first and foremost difference between leasing and owning a car is ownership. Simply put, buying a car means you can own the car and keep it for as long as you want. Rather rent. You rent a car from the dealer for a certain period, after which you can no longer use it.
- Monthly expenses:
If you cannot meet up with the expenses, you will undoubtedly choose to lease a car. This is because leasing a vehicle is at least 30% less than owning a car.
- Cost of acquisition:
If you decide to buy a car, you need to pay an advance (10%) to benefit from the best financing rates; on the other hand, the money taken as an advance is much less than the purchase, the lease does not require a deposit. If you are on a budget, you will be safer with leasing.
- Ownership duration:
By “ownership” we mean owning your vehicle. When you buy a car, you can take it with you for as long as you want. It depends on how well you can take care of it. The better the car is maintained and the longer it lasts. Renting a car means using it only for a limited period. Usually, a vehicle is rented for two or three years. Often there are some penalties if you return the car before the lease term expires.
- Vehicle return or sale:
Once you’ve bought a car, returning it is no longer an option. If your car is functional and in good condition, you can use it. If you want to get rid of it, you can sell it or trade it. However, if you do rent a car, you don’t have to go out of your way. When the lease expires, you can return the car to the dealer and your job is done.
- End of term:
For both leasing and buying, you have to make payments within a certain period of time, when buying a car, the payment is one-time, but once the payment has been made in full, your job is done. When leasing a car, you must pay until the vehicle is returned.
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