Leasing a car or taking out a car loan?
Suppose you have found your ideal car. It’s just a little out of your budget. Not to worry, leasing is an increasingly popular outcome. Still, wait a little longer before taking out your lease, because there is another interesting option: taking out a car loan.
Leasing a car
Leasing a car has a number of advantages. This way you pay a fixed amount per month, which includes everything apart from gasoline. So you never have to worry about unexpected costs. Moreover, leasing makes an “overpriced” car suddenly accessible because you can spread the amount in small chunks over a longer period of time, rather than paying for it all at once.
However, there are also disadvantages to leasing. Thus, it is not always more economical than buying at once, because leasing companies also want to make some money. Perhaps more importantly, your choice of car is not always free. With the vast majority of leasing companies, you are limited to brand new cars. There has to be just what you are looking for in between. Moreover, a brand new car is actually unnecessarily expensive compared to a young used occasion.
Car Loan
Therefore, a very interesting option is to take out a car loan. In doing so, you have most of the same benefits as with leasing. For example, spreading the purchase amount and a reasonable fixed amount per month. The only difference is that a loan does not include maintenance. In return, however, there are additional benefits. For example, taking out a car loan is often more economical than the lease rate for a brand new car.
Completely free car choice
Perhaps an even greater advantage: the choice of car is completely free! Whether you have found a brand new compact hatchback, young used mid-size car or just your classic dream car: you can always get a car loan for it. Something is possible for all price ranges. In fact, you don’t even necessarily have to choose a car. A car loan can also be used for a motorcycle, RV, caravan or other vehicle. Come up with that at a leasing company.
Choose your term and monthly amount
There is another big advantage to taking out a car loan*. Whereas many leasing companies have fixed terms and rates, a car loan offers much more freedom of choice in that area as well. You can pay off your car within a year, or spread it out over four years, for example. So that way you decide what the monthly amount will be. So suddenly many more cars are within your budget! Does your situation change or just change your mind? Then in principle, term and amount are also simply adjustable in the interim.
Little administration
Another advantage is that there is less administration involved in a car loan. You simply choose the amount you want to borrow and don’t have to justify it with invoices. A car loan is also completely separate from your bank. So it doesn’t matter which bank you’re with, nor does your bank have anything to say about your car loan.
Car loan the most interesting choice
In short, won’t or can’t pay for your dream car all at once? Then a car loan is an ideal solution. Compared to a lease, you simply have much more freedom with a car loan, both in car choice and payments.
* Please note, borrowing money also costs money