A car can be really expensive. There are a lot of expenses entailed into the maintenance of car, not to mention the expenses you would have to incur in the day to day use of it as well. The prices of petrol and diesel are also very unstable as it goes up and down, but it most certainly has gotten more expensive throughout the years. If you want to buy a car of your own, on top of these expenses, you would also have to of course put up funds to buy the car. If you do not have sufficient funds in hand, you would have to go through banks or other financial services channels so apply for a car loan. Most often, the number one criteria for loan applications is on the basis of your credit history. If you do not have a good credit score in your background, then you would most likely get rejection. An option you could go for is that you could opt to get a car leasing for bad credit score holders. Not only will you have an easier time getting approved, but it could actually give you better financial freedom compared to buying your own car.
Leasing is More Affordable
When you lease a car, you would pay off the depreciation value of the car for the number of years you would have it on lease. On average, a typical car lease contract would last around two, three, or up to five years. The amount you would have to pay monthly for the use of the car would depend on how long you would use it for. But because you would not be paying for the whole value of the car, you would generally have a lower lump sum payment at the end of the lease compared to the monthly repayments on the loan you would have to make for around five to ten years. When you purchase a car, you would also have to pay taxes relating to sales, which you would be saved from when you opt to lease out a car instead. Leasing out a car would have a lower bearing on your budget and even available cash flow compared to buying one, so if you want a better grasp of your budget and cash flow, leasing is most definitely for you.
Leasing has Fewer Expenses
Owning a car entails a lot of expenses, from the everyday cost of petrol to the quarterly or annual maintenance schedules to help keep it up and running and to the more miscellaneous expenses such as when a part breaks down or worse, when you get into an accident. With leased cars, these expenses would significantly be lowered because most (if not all) of the leased cars are actually brand new with existing manufacturer’s warranty. When something breaks down, you do not have to be burdened by the cost. All you have to do is simply bring it to your dealer or lessor, and the manufacturer’s warranty will take care of the expenses. Not to mention the need to buy a specific insurance policy for the car you are using out of your own pocket – you would not have to do it because your dealer or lessor should already have this covered and included in your monthly payments.
A Shorter Commitment
When you apply for a loan to buy a car, you would have to be tied up to your loan repayments for at least three or five years. It could even be more, depending on the flexibility of your payment scheme. With leases, it is generally shorter than loan repayments, so you do not have to be burdened by the monthly expenses for a long period of time. If for any reason at the end of your lease, you realize that you do not need a car after all, you could easily just not get a new lease anymore and just spend the money for other pressing matters in your life. With a shorter monetary commitment, you would be able to spend your money on the things that really matter should the time call for it.
No Hassle in Needing to Resell the Car
If you own the car, after a few years, it loses value and you would want to have a new car or perhaps you would need the money for urgent matters. When this happens, you have to go through all of the