The crowd, the lack of privacy and comfort, the noise… Let’s face it, everyone would like to escape public transportation. And for that, what could be better than having your own car?
Indeed, this allows you to be free in your movements, enticing isn’t it? Everything would have been perfect without the big hole in your wallet, a sign of a visit to the car dealership in your town. Fortunately, other options are available to you when buying a new car is no longer the first choice: leasing and buying a used car.
Car leasing
Car leasing allows you to potentially acquire or make use of a car through a leasing company. This involves three parties: the dealer, the buyer or lessee, and the leasing company. The principle is the same as a rental, or almost. Indeed, the difference lies in the fact that at the end of the lease period, you have the option to become the full owner of the car you are renting. In concrete terms, the leasing company buys the car from the dealer and then leases it to you for a specified period in exchange for periodic payments. You thus become a tenant.
There are two types of car leasing contracts:
Lease without purchase option: the lessee pays a regular rent in exchange for the use of the car, and at the end of the contract, he is required to return the property to the leasing company, it does not differ from a standard lease contract.
Lease with purchase option or properly speaking leasing: at the end of the contract, the contract holder can either return the car or become its owner by paying a predetermined amount at the time of signing the contract.
Advantages
- Leasing is accessible to everyone and has a great financial advantage: indeed, expenses are more flexible and easier to manage. They weigh less than in the case of a basic car loan.
- Leasing has the advantage of not requiring any initial payment.
- Having a vehicle without a firm commitment to purchase, which allows the holder to be able to adapt his choice of vehicle according to a specific need.
- You avoid the hassle of resale (in the case of a lease without purchase)
- Generally, the leasing company also takes care of additional services such as insurance and maintenance
- You are serene
Disadvantages related to leasing
- Even if the principle of monthly payments makes leasing easier to manage, the final cost can be significant, especially when the lessee opts for the purchase at the end of the contract
- Mileage limits. Because yes, when signing a leasing contract, you have a mileage margin not to exceed under penalty of paying additional fees (the imposed limits may vary). But fortunately, it is possible to increase the number of authorized kilometers with the leasing company.
- The feeling of not owning your car and the lack of customization
- End-of-contract restoration costs if the car has been damaged
The second option available is buying a used car
A used car is a car sold second-hand, i.e., a car that has already been used. It can turn out to be a highly advantageous choice.
Advantages
- A more interesting financial solution
- You can afford more choices according to your budget, and this allows you to have a larger bargaining margin
- You have no constraints in the use of your vehicle since it belongs to you
- Possibility of reselling your property
- Lower insurance and tax costs
Disadvantages
- Used cars can be less reliable. In the most serious cases, some people have ended up with stolen cars.
- Never be immune to potential technical problems: To sell quickly, some owners hide the defects of their vehicles. That’s why it’s important to have a technical inspection.
- A potential drop in your car’s performance after purchase
- Uncertainty about the vehicle’s history
- Lack of customization: indeed, you inherit the car as it is, even if you do not appreciate some of its aspects
So what is the wisest choice?
In itself, according to us, both options are valid, each presenting advantages and disadvantages even if buying a used car requires more careful attention. Ultimately, it is up to you as the buyer to make your choice taking into account your preference and your financial capacity.
