Auto loan or leasing what to choose?

The choice of financing method is important for a vehicle, especially in a period when the transition to electric cars seems to be inevitable, a period of uncertainty especially in terms of the cost of maintenance.

Auto credit: a question of budget

Who can say so far how much electric vehicle maintenance will cost, because if these engines promise to no longer release CO2, it will still be necessary to perform tire maintenance, braking and all other elements being attached to the structure of the vehicle. The car, so far so good. But concerning the electric motor, the manufacturers have not yet necessary recoil to predict the aging of the cars and thus to buy an electric today does not make it possible to quantify from a budgetary point of view the expenses to be envisaged in 5 years, not precisely.

For a thermal vehicle, we know that the distribution is expected on most models, that the tires have already been changed and that at least 3 engine interviews have been done, it even allows to have the rates of the concession to carry out these interviews, leasing arrives at the right time to run in electric without worrying about the costs of interviews.

Leasing as an alternative

One in three vehicles today is associated with a leasing contract, ie it is offered via an LOA or LLD lease. This contract provides that the lesser remains the owner of the vehicle, it is usually the financial partner of the concession that offers to finance and the motorist is designated as the main driver of the vehicle. He may use the car according to the terms defined in terms of mileage and rental period.

Leasing offers an offer to use, rather than an offer to the owner, the idea is to define a contract in the image of the needs of the motorist, while leaving him the choice to personalize his car as good it seems, colors, options, finishes, everything is carefully entrusted to the motorist who can discover the pleasure of ordering a car catalog.

What is the cost of car leasing?

The cost of a car leased will depend on the car itself, we can find cars for less than 100 euros per month like the Renault Zoe in electric for example, and we can very well climb to near 1000 euros for high-end vehicles. The only limit is, in fact, the ability of the motorist to support a new load in its finances, so it is necessarily necessary to resort to a simulation of borrowing because leasing is obviously a credit.

Read Also: 5 tips to negotiate your mortgage at the lowest rate!

Leave a Reply

Your email address will not be published. Required fields are marked *