If you’re looking for car leasing in Lismore, weigh up some of the pros and cons before diving in.
What is car leasing? Car leasing is basically a long-term rental agreement between you and the owner of the car. In Australia, the financier ‒ usually the bank ‒ buys the car and then rents it out to you for a predetermined term in exchange for monthly payments. At the end of said term, which is usually around 24 to 48 months, you can either return the car or buy it for a depreciated price.
The Upsides
One of the upsides to leasing a car is that you get to change it out for something different every few years. You won’t get stuck with the same car for too long. There’s nothing nicer than driving away in a brand new car every few years.
Another major benefit of leasing is that most leasing contracts include warranties that cover the car for several years against any necessary repairs ‒ although not for damages caused by the driver ‒ which makes it a safe choice. You won’t suddenly have to deal with any massive expenses from breakdowns.
Moreover, monthly lease instalment payments are typically lower than those owed when buying a car outright. Even better, you don’t have to worry about trying to sell it when you think it’s time to move on up.
The Downsides
One of the biggest downsides to leasing a car is that, for all your monthly payments, you don’t own any equity. When you buy a car, you acquire more of its equity with every instalment. One day, you will own a nice asset that you can use to grow your wealth further.
However, since cars depreciate so rapidly, it might not be such a bad thing to avoid owning one, as you won’t be investing in something that loses value with every passing day.
In terms of overall cost, some people calculate that, depending on the car and how well it’s looked after, it could work out cheaper in the long term to buy and then hold on to a car for as long as possible rather than lease. However, in the short to medium term, leasing is cheaper.
For car leasing Lismore, let ZEP Finance help you secure the right deal today. Contact us for more information!
