You Have Many Financing Options Available To You When You Want To Acquire A New Car And Here Are The Advantages And Disadvantages

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You Have Many Financing Options Available To You When You Want To Acquire A New Car And Here Are The Advantages And Disadvantages Powered By Docstoc
					You Have Many Financing Options Available To You
When You Want To Acquire A New Car And Here Are The
Advantages And Disadvantages
If you are looking to obtain a new car then you could look for car finance to buy it outright
or you could investigate the leasing options available now. This article looks at the
advantages and disadvantage of both of these methods.

Making a choice between car finance and car lease is a daunting task. It is like when you are
purchasing a pair of shoes. Most automobile experts have different opinions on the topic.
However, you are the only one who can scoop the appropriate advice.

A car lease does not make you the owner of a vehicle. You are entitled to use the car as you
desire. Nonetheless, you are required to return the vehicle once the stipulated lease period
expires. However, some contracts contain a purchase option. This can enable you to
purchase the vehicle in the course of the lease period or after it expires. On the other hand,
car finance enables you to purchase a vehicle. The financing contract allows you to own the
vehicle fully on paying the amount of money owed.

There are so many costs involved in leasing a vehicle. This may include registration fees,
taxes, down payment and security deposits, among other charges. These must be paid
before one takes possession of the vehicle, which may prove expensive. However, if you
finance your vehicle, you incur less upfront charges. In fact, you only pay a down payment
or a cash price, registration fees and taxes.

Do you know that if you lease a vehicle, you only pay for the vehicle depreciation costs
during the lease period? Besides, you pay less rent charges or interest and other charges
that may be owed. This usually reduces your monthly payments for the vehicle and is much
lower that buying a vehicle through car finance. In this case, one must pay the entire
purchase price, taxes, interest and other fees. One may end up making more monthly
payments.

Leasing allows you a better opportunity to early termination of the contract. Indeed, it only
attracts a charge for early termination. However, if you are buying a vehicle, it is not easy to
terminate the contract early. This is because early termination would require you to settle
the outstanding balance first. Besides, it would attract prepayment penalties.

Car lease limits your mileage. However, some contracts provide channels through which
higher mileage can be negotiated. Nonetheless, this comes at an extra fee, which may be
expensive. This has been a bother to most people because such fee is usually demanded at
the expiry of the contact, which has caught them unaware. On the other hand, buying a car
presents many opportunities. One is not restricted on the mileage. Besides, you can resell or
trade-in the vehicle at your will.

Automotive experts argue that auto financing is a term that has been misunderstood for
long. However, those who understand how it really works have found it easy to make
decisions between buying and leasing a car. All you should understand is that car dealers
are not capable of financing your car lease or car finance. However, they can affect your
auto financing and other charges such as interest rates. We have explained what we think
will help you shun costly mistakes.

Resource

There are a number of expenses attached to driving a new car so when it comes down to
financing you need to make the decision carefully. You can learn a lot more about Car
Finance New Zealand by going to http://www.carfinance2u.co.nz and following the steps
that are outlined there. There are many advantages to leasing a car as opposed to obtaining
a loan and repaying it over a number of years. With most leasing arrangements the car
servicing and road tax are included as part of the deal and if there are any mechanical
failures then the car dealer will replace the car immediately.

				
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