Car leasing is gaining ground
Car leasing is an easy and convenient way to have the car on, and more and more are becoming aware of the many benefits of leasing a private car. About 10% of all new purchases of private cars in the US is done today by the customer leases the car rather than buy it. The americans have thus gained significant leasing concept to themselves and it is of good reasons.
On this page we review the advantages and disadvantages of leasing a private car compared to the more traditional forms of car finance.
Save the interest payments on a car loan
If you lease your car, you have the advantage of having a new car available, without the need to take out a large loan to buy and own car. Many companies today offer car leases with no down payment or with a very small down payment. All one has to pay for the car, the fixed monthly repayment.
Interest expenditure and performance of a car loan for just an ordinary family car runs easily into several thousands of crowns a month. Lease other hand his car, saves not only interest payments, you also avoid having to pay a transfer tax to the state of his car loan.
See also: FindLeasing
Save a large part of the registration tax
New tax rules have made it much more attractive to lease private cars. When you lease, you pay only an amount equivalent to between 0.5% and 2%. month of the total calculated registration. By leasing you pay in other words, only Danish registration fee for the time you actually want to use the car. This avoids a major capital tie and do not need to borrow money to finance the car.
If you choose instead to buy his new car, you must pay the full registration fee of up to 180% at once. A car which cost 20000 dollarswithout registration therefore end up costing 30000 dollars when you as a consumer to go out and buy the car. However, there is opportunity for some minor deduction if the car’s fuel economy and safety.
Car leasing provides a greater sense of security in everyday life
When you lease a private car has a fixed monthly lease payments, and thus a greater sense of security in everyday life. The performance in the lease is fixed, unlike many car loans with variable interest rates, where no security whatsoever has, how much to pay off the loan in the next month.
In addition, you avoid sudden and unforeseen repair shop bills. Service on the car you lease and any minor repairs and replacements are included in the fixed monthly repayment.
Leasing means more freedom
When you lease your car, you have the freedom to change cars often without having to worry about the resale price. There is no risk of loss from the sale of the car and you avoid all the hassle of selling it. The typical lease will run for 2 or 3 years, and the vast majority choose to lease a new car again when the lease period has expired.
One can thus replace his car when a new model on the market without the cost it has by having car will be higher because of it. The buyer on the other hand a new car, it loses so much in value the first 2-3 years that very few americans who can afford to replace it every time a new model.
New cars are usually also more with fewer older models, so by replacing the car often saves also money for gasoline or diesel.
Disadvantages of car leasing
Although there are many advantages to car leasing, there are also some important drawbacks:
Do not just install extra equipment on the car: Either it could be removed without visible marks or they must leave it sitting at the end of the Agreement (provided that the leasing company agrees).
There may be restrictions on who can drive the car, and in which countries it may run.
In some leasing companies it is very expensive to travel further than agreed in the lease. Always check what the price is per. the kilometer, and comparing it with your driving needs.
When the car returned, conflicts may arise about the car’s condition. Always make sure that it is an independent expert who will assess the car’s condition and determine who should pay for any damages.
In some companies, it can be hard to get out of the contract before the lease expires. Beginning in January 2010 makes a new law, however, that consumers have a one month notice of termination of its lease after 11 months lease. In other words, you can now be out of contract a year after it was signed -Whether how long you originally agreed to lease the car. However, you must typically pay a small amount of cash to get out of the contract.
As you can see, there are both advantages and disadvantages to lease a private car rather than buy it. But is it the benefits against the drawbacks, you see, however, typical that the benefits far outweigh the inconvenience and disadvantages of leasing a private car. The economic advantage of car leasing is simply so great that in most cases most profitable to lease his car rather than buy it.