Your Next Car: Why is Private Leasing a better option than other alternatives?

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In the good old days, our parents were of the view that a person should save up for their car over a long period of time. Things used to be simpler than just like their sage advice on finances.

In today’s world with so many choices and financing options available, getting that new car is easier than ever. You can either opt for a car loan, some car rental options or last but not the least, the private leasing option for that new car you can get your hands on immediately. If you are having a hard time understanding all these myriad financing options you’ve got on the table, then you’ve come to the right place. This article will show you why it’s easier to opt for leasing for your car as opposed to the other alternatives.

Suppose you want to rent a car for a very long time say for like 3 or 4 years. If you pay a trip to the local car rental place chances are going to abandon the whole getting-a-car enterprise altogether. Here’s the reason why. Car rentals are calculated on a per-day/week/month basis. These rates are rather high for getting a car for a short term. During the period of rent you alone are responsible for all the damages and repairs of your car that you incur during use. In renting a car you are only limited to the choice of cars that your dealer has in stock. The more expensive the car, the higher their rental costs.

Now we are going to consider getting the car on a loan. When you are going for the car on a loan, the first thing you have to be aware of is the huge down payment you have to put down for your vehicle. The bank may adjust your monthly payments for ever-increasing interest rates and inflation costs. The moment you buy that car and drive it, its value goes down as the car is considered a depreciating asset by the bank.

Let’s get back to the private leasing option. By opting for leasing the car, you can avail many advantages. First you can get your dream car and are not limited by the range of cars. Leases are more economical than renting a car cost-wise on a day to day basis. They don’t require any huge down payments. Nor are they subject to changing monthly rates owing to inflation, interest-rate adjustments, etc. You only have one flat monthly fee to keep in mind. By leasing you can conserve your capital for other productive purposes. You can pay the taxes on your car over a longer period of time. Last but not the least your insurance needs are fully covered by the leasing contract.

Over all the private leasing option is best if you want to change your car after every 3-4 years. The insurance headache is taken care of by your leasing company and you also benefit from not having to pay a huge principal amount as an initial down payment.

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Cynthia Lambert has 7 articles online

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Your Next Car: Why is Private Leasing a better option than other alternatives?

This article was published on 2012/04/30