Buying a car: leasing or car loan?

Currently, a large proportion of car owners do not buy their cars for cash, but take money from a bank or other credit institution. Of course, not everyone wants to deal with loans, but there are times when you simply cannot do without credit funds. Today, there are two most common ways to purchase a car, apart from cash:

• lease purchase
• car loan

Some people do not even suspect that these are completely different concepts and that each type of loan has its own advantages and disadvantages, so it is worthwhile to dwell a little more on each of these concepts and find out the main advantages of both methods.

Buying a car on credit

I think that there is no need to describe all the subtleties here, since most of the owners are already familiar with this concept. You can draw up the procedure for receiving funds both in the bank and in the car dealership itself. Car loan interest rates https://carro.ru/credit/are announced immediately and do not always turn out to be pleasant. There were many cases that after the final calculation of all payments and the final amount of the debt paid, buyers flatly refused such a deal. Let's say you are going to take 300 rubles, but in just 000 years in total you can pay almost twice as much.

Another point worth noting is that by buying a car on credit, you immediately become the owner of the vehicle and have the right to dispose of it at your discretion. But it is not always possible to get a loan without problems. Despite the increased interest rates to unprecedented heights, some banks may refuse to issue for some unknown reason. It is this negative factor that can repel the client and lure him to the side of leasing.

Buying a car on lease for individuals

Until recently, leasing was practiced only for legal entities, more precisely - organizations. But times are changing, and thank God, for the better, so now you can use this service for individuals. The main difference between leasing and a loan is that the “purchased” car is not yours, but belongs to the leasing company until you pay off all the debt under the contract.

All procedures related to passing a technical inspection, insurance and resolving situations with traffic police, of course, will be handled by the driver of the car, but in fact, the car will be owned by the lender's company. Although, for some, this may even be a plus, so as not to shine their property in front of the public. It turns out that while the car is registered under a leasing agreement, it actually does not belong to you. And if you suddenly decide to divorce your spouse, then such a vehicle is not subject to division. Agree that this item is also very important for many who are not sure about their other half.

Interest rates are certainly lower here, but taking into account the payment of VAT, the result is approximately the same amount as for a car loan. Although, in recent years, everything has become much easier, and on the contrary, rates have sharply increased on the part of banks, leasing is becoming a rather attractive offer for ordinary citizens. But you should be careful when choosing a company that provides this type of service. Indeed, in the event of its bankruptcy, you will not receive back either your paid funds or your car!