A brand new vehicle looks shiny, and it comes with all the latest features and that new car smell. However, it all comes at a price. Don’t put yourself in unnecessary debt by blocking your cash flow and paying for a brand new car. A car lease can help you get a car of your choice without stretching your budget.
People with bad credit find it hard to get a car loan. This is where a car lease comes into play. Through a good car lease offer, you can get a car as well as a way to help rebuild your credit score.
A lot of people will argue that buying is a better option. However, they didn’t put into consideration the other expenses that come with making a purchase, whether you choose to do it outright or through a car loan.
Sizeable deposit. Brand new cars purchased through car loans require you to make a substantial down payment. As for buying a second-hand vehicle outright, you will need to make the entire payment outright, and this can put your budget for the next few months off balance.
Repairs and other maintenance. Car ownership means being responsible for your car’s well being.
Selling is a challenge. Once your family outgrows the car, or if your business needs a more recent model, you realise that the car’s value isn’t the same as when you bought it, losing you money in the process.
Larger payments. If you manage to purchase your vehicle through a car loan, you will be expected to make payments for a set period of time. These payments can really put a dent into your family’s current budget and may make it harder for you to enjoy other activities in the meantime.
Car loan approval is a no go. If you have bad credit, then you might find it harder to get approved for a car loan.
Leasing a car
When you lease rather than buy a car for your business, then you can then enjoy tax benefits. It also allows you to rebuild your credit score, as long as you pay your fees on time every time. Here are a few other benefits of leasing:
Lower deposit The upfront deposit for leased cars is significantly lower compared to that of buying cars. This makes them more affordable for those who are facing financial difficulty.
Minor repairs. Leased cars are inherently long-term car rentals. That means all you have to do is minor car maintenance like making sure that your tyre pressure is right, keeping the windows and body clean, and making sure that your tank is always full. The major maintenance is up to the dealer.
No need to sell. Towards the end of the lease, you are given three choices: return the vehicle and be done with the contract, purchase the car, or apply for an upgrade. With an upgrade, you can get a larger and newer vehicle for your growing family without the hassle of selling the old one.
More affordable weekly or fortnightly payments. Finally, the weekly or fortnightly payments are a lot easier to handle compared to car loan payments. Working your budget around the payments made will be easier to do.
The benefits of leasing are that with it, you keep your cash flowing and allow you to allocate it for other expenses like piano lessons or paying for your child’s new sports equipment and even put towards your savings.