lease or purchase? – This is a question that many motorists deal with. And although both approaches are so different, you can benefit from both leasing and buying a car from some advantages profit.
What is leasing?
The Leasing of cars is becoming more and more popular in Germany. It concerns a special form of financing, which originates from the Anglo-American area. Leasing is comparable to the monthly rent for your living space.
How does leasing work?
Basically, leasing is nothing other than the Renting a car. For this lease you pay a monthly leasing rate including fees and interest. Down payments are generally not necessary. The contract is for a predefined time. Once it has expired, you return the car to the lessor and can choose another model if necessary. During the leasing period, you usually have to pay a comprehensive car insurance, which is predefined by the supplier. Only a motor vehicle liability insurance or a motor vehicle partial coverage insurance is usually not sufficient in this case. This is one of the differences to the classic car purchase.
Why is leasing favorable?
Whether they want to lease a car or buy a new or used vehicle after all, prospective car owners and vehicle owners are both a question of effort as well as cost:
– A purchased car you must, among other things register, instruct the insurance company to transfer your no-claims bonus class, apply a fine dust sticker and suitable Take out comprehensive insurance. Much of this is eliminated if you choose to lease a car instead of buying your own, as leasing providers often take care of all of this for you. – Another incentive is Price factor The Leasing a car is often cheaper than buying one. The fact that the prices for the monthly fixed costs are much lower than with a classic financing is again due to the interest rates. However, there are also purely economic reasons for the relatively low costs: If it is a question of leasing or buying a car, many choose manufacturers and models they already know. The leasing offer makes it possible to increase the sales of individual offers and to make the cars more attractive.
So whether you want to lease or buy a car also has to do with the fact, which procedure suits you and your financial possibilities best.
Who owns the leasing car?
When it comes to leasing, the question of ownership often arises. Although you during the contract period officially the vehicle owner or the vehicle owner the leased car always belongs to the leasing provider. It is his economic property and he is still the vehicle owner, therefore you are also no vehicle title get. Nevertheless, you are obliged to inform the Maintenance and service intervals are less frequent to fulfill according to the contractual specifications.
Advantages and disadvantages of buying and leasing a car
Each way of financing has its advantages and disadvantages. This also applies if you want to lease or buy a car. Buying the car online is a cheap option if you want a new car.
Buy a car: There are these advantages and disadvantages
+ Once you have paid for the car, it is yours and you can register it. Hint: Make sure that you have all the necessary documents for the registration that the registration authority requires.
+ You can use the car freely, deregister the car or sell the car privately.
+ Which Insurance you conclude is entirely up to you.
+ Once you have paid for the car, the monthly expenses to a minimum.
– Due to repairs you have No planning certainty about the running costs.
– You must have a high amount invest in the purchase.
– You should always take into account the depreciation of the car.
– Do you want to Sell car later, you have to take care of it yourself.
Leasing a car: These are the advantages and disadvantages
+ As a rule, new cars or young used cars are leased, which is why they are always hardly any wear and tear repairs accrue.
+ you have a vehicle that always up to date with the latest technology is.
+ You can periodically buy your change the vehicle, because leasing contracts expire by default after a period of between twelve and 60 months.
+ An advance payment is required at most in a small amount.
+ As a freelancer or self-employed person you can deduct the leasing rates from your taxes.
– After expiration of the leasing contract the car remains property of the bank.
– There may be limited use, for example in the case of mileage leasing.
– When returning the car it can lead to additional payments come – depending on the condition in which you return the car. You can take out the insurance. Not freely choose the insurance cover.
Conclusion: For whom is worthwhile?
If you need a new vehicle, you have the option to lease or buy a car. Both options have advantages and disadvantages. However, since in both cases High financial investment trades, you should invest your consider further procedure well. The decision should be made independently of the registration, the insurance obligation and the registration costs. Because: You have to meet these obligations anyway – regardless of whether you want to lease a car or buy one instead.
Do you have all the capital for the car change in the bank anyway?? Then you can especially profit from cash purchase. Finally, most dealers offer you attractive cash discounts. In such situations, the question "lease or buy a car" can usually be answered with "buy".
If, on the other hand, you want to keep all your options open and regularly drive a new model, then leasing is the ideal solution. You commit yourself to your new vehicle for 60 to a maximum of 64 months. The loss of value, which the car experiences with the time, does not touch you thereby at all. The clear advantage for you as a vehicle owner is that you pay fixed monthly installments. This allows you to A certain degree of financial planning. Alternatively, you can choose between different forms of car leasing. In some cases it is a fixed rate, but car leasing private also works as mileage leasing or residual value leasing. The most important difference between leasing and buying a car is that you do not own the car afterwards.