Buy vs. Lease
Is it preferable to purchase an automobile or to lease one? This decision largely depends on the individual and the circumstances. Purchasing and leasing are equally beneficial. For a proper insight into how both options, here is some clarification.
Purchasing an automobile
WHO OWNS IT
Purchasing an automobile requires that you fund it and this could be in the form of installments. Expectedly, purchasing a car would require that you satisfy the requirements of the lender which often comes in the form of a block payment that would be followed by a stipulated amount in installments. Failure to hold up the deal could result in forfeiture.
INITIAL EXPENSES
The amount of the down payment is usually based on the lender's requirements and your credit score. An initial payment would be required by banks in cases where you are handling the funding. It is equally possible to put forward your used car or any asset value towards the initial payment. Initial payment is often determined by the lender?s desires and your credit score.
PROSPECTIVE VALUE
The price of a car when it is purchased minus depreciation often determines its value when you choose to sell it. Expectedly, a well maintained car would have far more value than a car that is used badly.
FINALISING PAYMENTS
After completing payments based on the stipulations of the contract, the car becomes yours completely. This would be made know to you through a lien release which serves as evidence that you are now the proud owner.
Leasing an automobile
OWNERSHIP STATUS
You are not the owner of a car when you lease it. You are only paying to use the car for a short while. The enterprise that leased the car to you owns the car. This explains the lesser fee on a rented car.
INITIAL PAYMENT
But, as with a purchase, if you want to lower your monthly payments you can always pay more upfront. There is no initial payment on a leased car. Payment for the initial month would serve as a guarantee in addition to a variety of miscellaneous charges. Just like with purchasing a car, lower monthly fees would mean a initial payment or first month deposit in the case of a lease.
PROSPECTIVE VALUE
When it comes to car leasing, you cannot sell the car eventually because it is not yours. Selling the car is the sole responsibility of the enterprise that owns it. In the bid to protect the prospective value of the car, there would be stipulated restrictions on the mileage and on car usage that you must abide by. Failure to abide by these stipulations would attract additional charges.
FINALIZING PAYMENTS
While it is expected to give a car back after the lease period, it is quite common to find that people who lease cars wind up buying it after some time. Some would trade it in before the rent period ends. It is important to verify the various lease options before making a move. At Koons, we will get your lease process started just like you would like it.
THE MOST PREFERRED CARS FOR RENT
Review the lease ratings to see which cars retain their value. The most preferred cars for rent are cars with the most impressive written value. Especially because the rate of depreciation is quite low, you would equally pay little. It is best to investigate the cars with the least depreciation for an informed decision on which car to lease.