One of the cheapest ways to have something is to either steal it or borrow it and by all possible means, the latter is the best way forward. find more info
An outright purchase puts a huge strain on ones’ resources not to mention that the new owner would be responsible for everything of the item. Cars fall into this category where outright purchases are costly but car leasing, on the other hand is less of a burden. However, there are certain factors that one has to note while going in for car leasing and the present article stresses on a few of the more important points among the pool of factors that are involved in this borrowing.
The question of why is an interesting one. Why would anyone want a loan for a car rather than buy it outright? An analogy can be made with applying for a car loan by even the most affluent classes. Tax exemptions apart, the psychology of taking a loan means that a person does not see a lump sum being paid but rather a smaller amount is being siphoned off their reserves. A person can plan for these deductions while the same cannot be said if one decides to purchase a car all of a sudden. There would be an initial security deposit that would be secured in the form of bank checks. As soon as the monthly installments are disposed of, the bank would return the checks to the customer. A similar process is followed in the case of car leasing as well. Here, in addition to the price of the vehicle, insurance schemes are funded by the owner; so there is a lot less hassle. Moreover, annual maintenance costs are also borne by the owner if it is a company that is leasing the vehicle.
The major issue with car leasing is that it is a lessor – lessee relationship. The user of the car never gets to own it. This means that any addition or reduction in accessories must be done with the permission of the true owner which is the dealer of the vehicle. If this is not an issue, then leasing a car is a better bet than owning one through an outright purchase.
There are some other costs that one would have to bear which would be specified in the final contract. The “as was as is” clause, for example requires the borrower to return the vehicle to the owner in the exact condition it was leased. This means that the lessee must be extremely careful with the vehicle while on the road or when it is parked in the garage. In case this is not so, the lessee would be required to pay for the “excesses” that may be required to revert the vehicle to its initial condition. This is of course, unless the vehicle had to go through “these improvements” with the express permission of the dealer. Other costs include that which may be imposed if the vehicle crosses the lease period or distance limit.
A pre-requisite for car leasing is that the lessee should have a good if not impeccable credit history. Moreover, the lessee doesn’t have to wonder what to do with the car once the lease period is over. If impressed, they can buy the car outright after the lease period.