Leasing and using an auto loan is often a choice for most people because they do not have cash to buy a new car. The decision an individual makes with his car finance option will greatly affect his/her income over the years. This is because buying with cash or leasing does not just involve money but also cuts across time.
Are you the kind of person who would want to ride in the latest car models available in the market? or are you just interested in a car for the purpose of transport and comfort? Whichever your car finance option, you need to be careful. Auto Loan Service offers a flexible car financing option to meet your every need. Now you should take your time to consider these facts to know which car financing option suits you best.
The moment you walk up to a salesperson to ask about a car, then you begin to make your decision as to which finance option to take because definitely the salesperson is going to ask for your choice of finance option. Now your choices could be: buy the car, lease the car or pay cash for the car.
Buying the car would mean filling in a credit application based on your credit scores as an auto loan will be arranged through the dealership. This finance option is known to be a 36-60 months endeavour. The amount of money you pay for the car depends on the length of time, your interest rate, initial payment and the total sum of loan. The basis of this car finance option is that the lending company retains the ownership of the car until you completely pay for the car. All of the car’s document will be sent to you once payment has been made.
Opting for car leasing as well comes with its benefits, such as low down payment, low monthly payments and reduced maintenance cost. The monthly payment is kept low, lower than buying car with an auto loan. Also another benefit is that this finance option comes with a 3 year warranty taking care of mechanical failure. Although as attractive as this may seem, it also has its disadvantages. One of such is that you will only have the car when the entire payment is complete. It is actually seen that car leasing is more expensive on a long term basis. One thing to note is all auto leasers give you a limited number of miles to drive a year. This simply implies that the more you drive the higher your payment.
Choosing to pay cash for a car is actually quite simple and probably the most favourable finance option. This is beneficial to those whose income can very well support a huge transaction as such. Car financing options are available to meet your needs depending on your budget. so which ever way you seem to go, your car finance option will definitely affect your pocket.