Definition of car leasing or car buying
Car buying refers to the purchasing of a car and owning it. Accepting liability for anything that happens to it until when you decide to surrender the ownership. Car leasing which is also known as car renting or even personal contract hire is when you agree with a company or person (s) to hire their car for a certain period. You as the client are required to sign an agreement before taking the car. It should contain the period of time you will have the car and coverage of the car or where it’s most likely to go during that period.
Before you take the car from the owner or company, you are required to pay the acquisition fee which is in most cases non-negotiable. What makes car leasing better than purchasing a car? Some of the advantages of leasing a car over purchasing a car include:
When you purchase a car you end up having one model for a long time. However, when you are leasing a car you have the luxury of driving various models within a short time without worrying about the costs accorded to the diverse models. You might be driving a limo today and a Pajero the next day. In this way, you get to sample the best model without being tied down to using a huge amount of money.
Car leasing is cheaper than car buying. This is because for you to hire a car you don’t need a huge amount of money upfront. However, purchasing a car requires a large amount of money upfront for you to afford it. While you are testing your newly acquired driving skills, you can lease a car as you save on buying one of your own. Even if you are servicing the purchase of a car through loans you will still have to have a higher amount of money. This is because the monthly loan payments are typically more costly than the acquisition fee of hiring a car.
There are lots of expenses that come with purchasing a car; they include license fee, cost of registering the car, taxes and other fees levied on new vehicles whereas leasing a car only requires you to pay the leasing fee or in some cases a refundable security deposit. This certainly makes it cheaper and more convenient for one to lease a vehicle.
When traveling to another region, using a car hire company will certainly make more sense than purchasing another vehicle while there. Taking your car to a far-flung foreign country is even worse because it will be more expensive. Therefore car leasing will be better if you plan to stay in a foreign place for some time. It will also provide a better option if you are planning to carry out private activities.
Cars have been with us for more than a century and the first model has continued to be advanced and the value keeps on increasing. When a new car model is developed, most people want to purchase it. However, as it continues to stay in the market, its value depreciates and another model is bound to be developed. Therefore it’s better to car lease because you will get to exchange it frequently and opt for a superior model. On the other hand, if you purchase one, you are likely to stick with it and when a better model crops up, selling it and purchase the latest one will prove to be very costly and difficult.
Car lease companies understand that a vehicle has the normal boundaries of wear and tear. This means that they can never charge you for this. Nevertheless, when you purchase a car you are liable for all the damages and the cost of all the minor repairs.
Finally, when you car lease you get a ready car and you choose the best one that suits your needs.The car hire company will always aspire to maintain you as a client. Therefore, they will always give you the best value for your money. On the other hand, when you purchase a car especially a second hand one, you might be getting a raw deal from the seller of the car.