There are many car loan options to choose from, and it can get confusing which option would best suit your needs. Buying a new car using a loan or car leasing in Lismore are both great options that suit different people.
To help you out, we have compiled the differences between buying a car versus leasing a car so you can make the best choice for your needs.
Car Ownership
- Buying
When you buy a vehicle, you are the owner of that vehicle. Therefore, you can keep it for as long as you want.
- Leasing
When leasing a car, you are not the ‘owner’ of the vehicle, and you will need to return it at the end of your lease unless you decide you want to buy it.
Monthly Payments
- Buying
If you buy a car using a car loan, your monthly loan repayments will be higher than your lease repayments. This is because you are paying off the cost of the entire vehicle plus interest and other fees.
- Leasing
Lease payments are generally lower than loan payments because you are only paying for the vehicle for a certain lease period, meaning you will be paying off how much the vehicle depreciates in that time and not the entire cost of the car. Your expected mileage, taxes and other fees can affect your monthly lease payments.
Vehicle Return
- Buying
Since you are the car owner, you will have to manage the selling or trading of the car once it is too old or you decide you want a different car.
- Leasing
At the end of your lease term, you will return your vehicle, pay any outstanding fees, and move on.
The Future Value Of The Vehicle
- Buying
Your vehicle will naturally depreciate in value the longer you have it, but you will be paid the value of your vehicle when you sell it.
- Leasing
The future value of the vehicle you lease won’t affect you, so you won’t be tied down by a depreciating vehicle. However, you also won’t benefit from selling or trading it like you would if you bought it.
Both options of buying or leasing a car in Lismore have pros and cons depending on what you need out of your vehicle. Maybe you need to lease a vehicle for your business for a short period of time, or perhaps you need to invest in an asset for your business. Either way, we can help you find the best loan or leasing options: just call us today!
