Car buying refers to the purchasing of a vehicle on a permanent basis by an individual or an organization. The buyer of the car is entirely responsible for the car after the transaction is done. Buying of a car can be at one time, or the car can also be paid for on hire purchase up to the agreed period. The car buying process, therefore, involves identifying the model of the car one wants, after deciding on the design of the car one has to take a decision on the car most affordable to him, and then he or she then purchases the car of his choice.
Car leasing involves an agreement between a customer and a car dealership company. The two parties agree to let an individual drive a vehicle from the business or organization for an agreed length of time in return for an initial deposit and a sequence of regular monthly payments for the fixed period. At the end of the agreed period, the consumer has to return the car to the firm. In case an individual wants to upgrade to another new car a person has to pay another deposit and sign a new contract. The leasing process involves, first of all, agreeing to the terms of the contract, this helps to determine the initial size deposit and the price of each monthly payments.
Why it is important to lease a car.
Access to a variety of cars.
An individual who decides to lease a car has the option to change a vehicle anytime he/she wants to. Since leasing involves signing a contract on the car which one wants to use and the ownership is not permanent one may choose to change and use a different car at any particular time. All one has to do to switch to a new car is to upgrade is to pay another deposit and sign a new contract. In the case of car buying, one does not have the freedom of choice. Therefore, car leasing exposes one to a wide variety of cars.
Leasing is cost effective.
Car rental is cost-effective because it involves paying off the initial deposit and monthly payments which are far much less compared to the price one would have paid if he/she decided to purchase the car permanently. Leasing is affordable as far as cost are concerned because even individuals who can’t afford to buy a car and would like to use a vehicle can get them at an affordable price. In the case of car buying, it would require an individual to have comparatively massive amounts of money to purchase the vehicle.
Reduced maintenance cost.
In leasing the dealer or the company sometimes may decide cut some of the cost associated with the car, for example, the maintenance cost. This is very different in the case of car buying where one is entirely responsible for all cost associated with the car once he/she has purchased it this, therefore, implies car leasing less costly compared to car buying.
Car Leasing is more advantageous compared to car buying because in my view one requires a significant amount of money to purchase and maintain a vehicle compared to leasing where it is less expensive. Car leasing also enables one to enjoy a different variety of cars whereas in the case of car buying one is limited to the purchased car.