Leasing Cars or Cars on Credit

The TV advertisings for new cars and leasing proposals of the companies seem reasonable but you should think twice before you buy your car. If you have decided to change your car but you do not have enough money you will inevitably have to seek external financing. You should first estimate all the costs and alternatives before you decide which car meets best your requirements. After the mortgage or rent, car credit or leasing will be the next big step in your budget. Therefore, you should carefully calculate what you can afford. Remember including all costs that will follow after the purchase of the car. These costs must be included in your monthly budget because they will help you determine your actual monthly payments. It is advisable to spend 10% to 15% of your monthly budget for the costs of the car. If you buy a new car the warranty will cover major repairs for at least 3 years and even more (the various companies offer a warranty for the car from 3 to 5 years). In most cases it may not cover the routine maintenance of the car like oil charge or the change of the tires and other such things.

Financial leasing is one of the opportunities for buying a new car. The leasing term is about 5 years. It can fund the purchase of new and used vehicles (up to 4-5 years). Full car insurance is required and it should be regularly renewed throughout the term of the leasing. The advantage of this kind of leasing is that the contract signing procedure is simple and the service is available. The disadvantage is that very often the car services where the oil is changed and when and what insurances are done are determined.

Operating leasing-it is a contract for car rental because the ownership of the car is not yet given to you. The advantages of this method are that it is relatively cheap and that you drive a new car. Usually after the deadline, the companies propose signing a new contact, replacing your car with a newer model.

Credit for buying a new car-usually the term of the credit is five years. Both buying a new and used car can be financed. Full insurance is required. The advantage is that the car becomes your property at the time of the purchase. You choose the insurance company and service that you will use. The disadvantage of this type of credit is that the procedure for giving the credit is much slower than the leasing procedure.

What we can advise you is to look for the best opportunity for buying a new car before your do it. Ask for the advices of professionals who will tell you, which is the best way of buying a car.

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