Buy, lease or finance?

The pros and cons of all options at a glance

These days, there are several ways to get a car to your doorstep. In addition to traditional buying, you can also private lease a car. Financing a car is also gaining popularity. We list the various options.

When you buy a car, it is yours immediately and you can choose from all the models that are within your budget. Pretty nice. Unfortunately, new cars are just getting more and more expensive. So for the purchase, you will have to save longer. Or not? These days, there are plenty of alternatives to traditional car buying. We list the three main alternatives: financing, private lease and a new solution: AutoCredit.

Advantages private lease

Private leasing has become well established in recent years. Still, we’ll briefly explain what it entails. You choose a car from the lease provider’s offerings. For that, you pay a monthly fee that includes almost everything. The car itself, as well as road tax, insurance and maintenance. That way, you’ll never have any financial surprises. The only things not included in the monthly fee are fuel/power costs and, of course, any traffic fines. There are different terms for private leases, so there is always a contract that suits you.

Disadvantages private lease

Private lease is a very attractive option for driving a new car, but there are some things to consider. For example, there is usually a maximum number of miles you can drive the private lease car. Changing the lease contract mid-term because you started driving more or less is not always (easily) possible either. If you want or need to drive more, you have to pay extra, and that can sometimes add up quite a bit. Furthermore, some lease providers have a relatively limited car selection. Also, private leasing can be more expensive down the line than buying it yourself because, of course, the leasing provider wants to make some money. Finally, the private lease car never really becomes yours and you must return it at the end of the lease term.

Funding Benefits

Classroom financing can be an attractive alternative. This also involves a fixed monthly fee, which is usually lower than with private leasing. After all, you only pay for the car. You can often decide the term of the financing and the amount of the down payment. This allows you to largely control the amount of the monthly fee. So financing is really just paying for the car in installments. After the financing ends, the car is truly yours. Financing therefore often offers a wider choice of cars as well.

Funding disadvantages

In return for the lower monthly fee, you do have to pay the road tax and insurance on top of that. On the other hand, it makes little difference whether you pay it separately or as part of the monthly fee. A more important difference is that car maintenance is not included in the monthly fee. An unexpected failure is therefore at your own expense.

New: AutoCredit

There is also a new form of financing: AutoCredit. This is very similar to traditional financing as described above, but includes insurance and maintenance. So it is actually a combination of financing and car lease. In addition, AutoCredit is much more flexible. After all, you pay for actual usage. If you drive your car a lot, you will have a higher monthly fee. If you drive little, you will also pay less at the end of the month.

Also, with AutoCredit, you don’t have to decide what you want to do with the car until the end of the contract. Keeping it yourself? Then pay a final, slightly higher monthly fee and the car is really yours. You can also decide to turn the car in and pick out another new car right away. A final solution is turning in without picking out another car. AutoCredit offers a choice of all Volkswagen Group models. So that means Audi, Cupra, SEAT and Skoda as well as brands such as Bentley, Porsche and Lamborghini. So there is always something for you.