Now, the time has come for the lease to end and a real family member, (in flesh and blood, of course), along with you is wondering "why not make it ours?" You see the sense behind this, and decide to take the plunge in owning that reliable darling of yours that you had been most comfortable with and had only been wishing was yours. Now is the time to take some important steps in arriving at that decision, and weigh the pros and cons of owning the car that you had leased till now.
One of the simplest ways of estimating the car's worth is to calculate what in automobile market terminology is referred to as the residual value. In simple words, this is assigning an approximate number of years to the remainder of the car's life, and subtracting from it the cost the car has already incurred by way of its having been with you for the lease period. For the normal lease period, i.e., three years, the current value given is half its on-road price.
For instance, let's assume you took on a lease of a sexy, sleek Mercedes whose price was $100,000 at the start of the lease period. Now, it assumes a value of $50,000, plus other charges the leasing company may have set as part of the deal, such as the purchase option fee. So, simple common sense dictates that you need to spend another $50,000 to own your priceless beauty! True, in most such cases, it may seem like you are coughing up more than you thought it was worth. But bear in mind the fact that you've driven it for three years. Moreover, it is a car that you know very intimately!
There is a simple method for finding out if you've got the best deal the market has to offer, just go around checking a car with similar conditions as yours with a multitude of dealers, then settle for the best deal! Then, of course, there is always the bargaining done on any such deals. Just offer your price, and try to extract discounts from the company which they're almost certain to do. Not because of any love for you, but because they had leased you at a higher price in the beginning, with the prospect of offering you ownership at the end of the lease period. This way, you own what you wanted to own, making your family happy in the process!
The idea of buying car with personal loans remains a far better option than buying a car through car financer or car dealers. Both, car financers and car dealers charge high interest and keep the terms and conditions in their favour. Any missed payment is also taken seriously. Moreover, there will be the surprise of hidden charges.
Far better is the idea of financing your car purchase with a personal loan. The loan market is flooded with lenders ready to offer you customised loans. You can take the personal loan that caters to your need in the best manner. There will be no hidden charges and no stringency in the terms.
To buy a car in the most favourable manner with a personal loan you can use your home. You can take a secured personal loan against the equity in your home. This loan has a lot of benefits to offer. The only drawback of this loan is the risk of losing the home in case of failure.
If your need of buying car is urgent then you can go for an unsecured personal loan. This loan has comparatively short processing, so it ensures quick cash release. You can avail personal loans despite your poor credit record. However, you may be charged a high interest if you apply for an unsecured personal loan and your credit score is poor.
Both Gregg Hall & Philip Mould are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Gregg Hall has sinced written about articles on various topics from Lingerie, Desserts and Mortgage. Gregg Hall is an author living in Navarre Beach, Florida. Find more about this as well as at. Gregg Hall's top article generates over 3350000 views. to your Favourites.
Philip Mould has sinced written about articles on various topics from Current Affairs, A Secured Loan and Secured Personal Loans. About The Author :The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Apply-4-Pers. Philip Mould's top article generates over 301000 views. to your Favourites.