Do you know what has become mainstream? Car leasing! Many individuals opt for renting out a car, but not many people are comfortable with.
When you are buying a car straight up, you will have to pay for the entire vehicle. When you are borrowing money from a bank or form an institution that helps lend, oneself will continue to pay it monthly for a number of years. When you are making monthly payments, you need to remember that these payments will also contain an interest fee. Whether you approach a Benz or Audi rental Singapore firm, you will still be charged the interest.
Advantages of leasing
- When you look at the surface, you will realise that more than buying a vehicle, you would rather lease one. When you make monthly payments, you will be paying lower because you are technically not borrowing any money and then repaying it.
- You will be driving the vehicle during the period that there are no troubles when it comes to maintenances and parts.
- You will always be able to get hold of a vehicle that is of the late model however; you will have a warranty from the manufacturer. This will usually include and oil change and a maintenance that has been scheduled for free.
- You will be driving a higher price vehicle, which is also better equipped.
- Regardless of the fluctuations in the car’s value, you will not have to worry about having to sell the vehicle due to the changes in the market.
- There are tax advantages for those who own businesses.
- You can just hand over the car back to the dealer.
Advantages of leasing
Although leases seem to be advantageous, here are the disadvantages:
- Leasing will cost you more than a loan and this only because you will be using a vehicle that is depreciating.
- If you continue to lease a vehicle then all you will be doing is paying monthly continuously which is beneficial to car leasing firms. You can maintain keeping it after the loan has paid off the value of the vehicle by keeping it after the loan.
- When lease out a vehicle, then you will need to check on the mileage. But if you are going over the limit of the mileage, then you will have to pay a penalty fee which means you will be paying more at the end of day.
- If you get the vehicle damaged or if it is not in the same condition as when you bought it, you will have to pay the additional fees too.
Now it is up to you to decide!