Owning your dream car can feel like the most wonderful thing in the world. If you spend a lot of time driving and you closely link your car model with your success and self-image, then you’re going to want to have a great car that you can show off about. However, you may not be able to immediately fork out the cash for your dream car, as is the case with many people. All is not lost, though! Leasing and financing can make viable options, all you have to do is figure out which one is right for you if any. Read on and before you know it, you could be driving off a lot with your dream car:
This is an option that was actually designed for people who wanted to drive around in luxury cars but didn’t really have a luxury budget. Around 3 out of 10 cars you see are leased, so it is a common option and one that can work well for many people.
What Is Leasing?
Leasing is a kind of car financing where you make part payment of the actual amount the car is meant to be sold. When you lease a new car, you are paying for the depreciation cost that occurs over the term of the lease, plus interest and other fees.
Who Is Leasing Good For?
Leasing a car can be good for those who want to update their car model every few years. You’ll never own the car, but you’ll have an opportunity to continue driving in up to date cars.
Now, hold your horses before you go out there and lease a brand new car. One of the best things you can do is lease a car that is already 2-4 years old, as, by this time, it has already done most of its depreciating. A new car depreciates the second you drive it off the lot.
Lower monthly payments
Get a new car model every few years
No major car repairs
Always have a car payment if you continue to lease
Won’t have anything for your money at the end of the lease
The dealer may add additional fees
Financing a car means making monthly payments in the same way you would a lease, except you are essentially paying off a loan and interest. This means you will end up paying more than what the car is worth if you were to buy it outright, but it helps those who don’t have a lump sum.
What Is Financing?
Financing is where you pay off the car over time along with interest. At the end of the finance agreement, you will own the car, although you will have paid more for it.
Who Is Financing Good For?
Financing is good for those who want a new car but don’t have a huge lump sum to pay for one. You can finance used cars too, like those from https://www.wavertreecarcentre.co.uk/used-cars. This can make it even more affordable.
Drive a car away for a low amount
Own your car at the end of the agreement
A smaller down payment is needed
Pay more than the car is worth
Can be expensive depending on the car
How will you drive away in your dream car?