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[C164]Car Leasing Vs Car Buying
by Mark Robinson, Mar
The capital cost is one of the factors for choosing between leasing and buying. People who don't have the capital to buy a car should consider leasing where you will only have to pay reasonable monthly installments. However if you can afford it, then you could consider buying a car either through an outright purchase or through a hire purchase scheme.

Though the hire purchase idea seems a good option, it is rather expensive as finance agreements are made here that have high percentage interest rates ranging between 20 - 25%. With this agreement, you may end up paying much more than the value of the vehicle at the end of the term.

By leasing a car, you don't actually own the car at the end of the agreement; however it does cover most motor related costs that won't get covered by a finance agreement with a dealership.

Buying your car may seem attractive; however you may suffer from high depreciation costs in the first 2 years where 20% of the value may be wiped out. Leased vehicles also suffer from the same problem but instead of you feeling the brunt of it, it is the leasing company that gets affected when they work at selling the car at the end of the lease.

On buying a car, remember that you will have to pay other costs for maintaining the car like insurance, car taxes, repairs and costs of damage or theft. Leased cars too face the same problems but as the leasing company is the stronger party here, overall costs are lower and are covered by the lease terms. And if your car is off the road, the leasing company also offers you a courtesy car. This offer is not available if you buy a car.

You could consider leasing a car to be a form of extended test drive for 2-3 years within which time; you get a feel of the vehicle and decide whether you want to buy the car at the end of the lease. However if you buy a car, you are stuck with it even if you find out that the car is not right for you. You could sell the car, but you lose in the process.

Though leasing cars seem to have most benefits, the largest benefit lies with buying cars where you are the sole owner of the car, and don't have to use the car following the terms stated in an agreement. And if your financial position changes, you are still the owner of the car. With a leased car, you will be bound with the terms stated in the agreement. Some leasing companies charge large penalties if you terminate or change the contract halfway through the lease period.

So on comparing the advantages and disadvantages of leasing and buying cars, you have to decide which option is better depending on your financial capabilities and if you want to be a 'full-time' or 'part-time' owner of the car.

Are you passionate about cars? Would you like to regularly exchange your automobile for something different and more up-to-date more or less whenever you feel like it or according to the time of year? Do you think that this is all very well but unfortunately it's simply a flight of fancy that only the very wealthy could ever afford? Well think again, and think flexible car leasing!

Flexible car leasing not only lets you keep up with the Jones's, but can actually save you money. No longer do you have to worry about spending tens of thousands of your hard earned pounds on a brand new car which will very quickly depreciate in value. You won't have to worry about repairs either as your car will be fully insured for all breakdowns. Best of all, flexible car leasing means that you can change your vehicle for a different colour, make or model as frequently or as infrequently as you like. It really is as simple as it sounds.

Although the rental policies of the various car hire companies differ slightly from one another, in general flexible car leasing enables you to exchange your current hire car for another one as often as once a month if you so desire. Sounds great? It really is, and there are absolutely no strings attached. The process is simple, cost effective, and (if you love cars) very rewarding.

What better way could there ever possibly be to find the motor of your dreams than to effectively test drive as many different vehicles as you want to and for as long as you like. Perhaps you'll fall in love with a car but decide that after a few weeks that you don't like the colour. No problem; flexible car leasing means that you can simply trade in your silver dream machine for exactly the same model in black - and it won't cost you a penny.

With flexible car leasing, unlike short term leasing, you won't even have to sign a contract, and your credit history is irrelevant. All that you'll be required to do is sign a standard insurance agreement.

Flexible car leasing is ultimately all about freedom. The freedom to drive the car of your choice and to let that choice change whenever you feel like it with absolutely no financial consequences.

With the money you save by not having to pay for a car outright in addition to the interest that that large amount of capital will no doubt have made by having been deposited in a bank or invested wisely elsewhere, why not take the car of your dreams on the driving holiday of your dreams. You've done well, so spoil yourself and your loved ones a little. You deserve it!

In conclusion, if you are a car fanatic and want to live your life stylishly in the fast lane while simultaneously saving yourself some money, maybe its time to think how flexible car leasing could change your life.

I go bowling most weekends with my friend Ricky, and he's always fun to hang out with.

Like me, he's hardly a millionaire. So it surprised me when he turned up one Friday evening in a new top of the range Mercedes Benz sports car, and a big grin plastered all over his face. (In fact, he looked almost smug.)

It was even more surprising when, a few weeks later, this model was gone. Instead, Ricky was at the wheel of a snazzy BMW 3 series coupe.

I was fascinated, and had to ask him - how did he do it?

"Simple," he smiled. "I don't buy cars these days; instead I go for a short-term car lease."

I was puzzled. Surely that meant a hefty cash payment at the start of the deal? And it couldnt be cheaper than buying a car - could it?

Ricky explained that, actually, with a short-term car lease, his monthly outgoings worked out cheaper than if he had bought the vehicles. It meant that he was on the road in vehicles he wouldn't normally be able to dream of driving.

Ricky added that he loved the simplicity of the arrangement - which gave him the freedom to choose which car he wanted. When he fancied a change, it was so easy to swap one vehicle for another. A different vehicle for the time of year and the sort of driving he was doing.

Ricky told me that, although his short-term car lease was for three months, he could have set up a shorter 28-day one had he wanted to.

"This particular short-term car lease is great for me because I don't have heavy maintenance costs, and this company even throws in free servicing," Ricky explained over a pint after one of our regular bowling sessions.

"Of course the greatest cost of car ownership is the way the vehicle depreciates in value, and I don't have to worry about any of that."

What Ricky was saying seemed to make perfect sense, and, as soon as I got home, I went online, where I knew I would find the best deals and the most comprehensive information about arranging a short-term car lease.

And I was right - I found stacks of choice, and everything I need to know. I found a friendly, hassle-free service very quickly.

The next week, it was Ricky's turn to be bowled over. When I showed up in an Aston Martin!

Article Source : Pg. 13

About Author
Both Mark Robinson & Brian Roman 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.

Mark Robinson has sinced written about articles on various topics from Auto Insurance, Insurance Brokers and Auto Insurance. Mark Robinson writes for Auto-Loans.GuideFin.com. Visit his website for information about .. Mark Robinson's top article generates over 165000 views. to your Favourites.

Brian Roman has sinced written about articles on various topics from Family, Insurance and Home Management. Mr Ames and the team at Semalease are a leading company based in the UK. Brian Roman's top article generates over 6600 views. to your Favourites.
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