The issue of funding for many car buyers not easy to answer. Leasing is generally more expensive than a loan.

The cash payment when buying a car is no longer the rule. For car dealers often offer such a cheap car finance that is worth the cash purchase any more. However, those who can not demonstrate sufficient collateral plays, perhaps with the idea of ​​leasing a car. Leasing, however, for private citizens more disadvantages than advantages.

What is the difference between buying and leasing?

What is a purchase, should be clear. The car is either a loan or paid in cash and is followed by the rightful owners. With leasing, however, this is not the case. Leasing is basically a rent set at a time. After expiration of the lease the car does not belong to the driver, but must be returned. Previously, it was quite common to be able at the end of the lease purchase the vehicle. However, this is now offered much less frequently. The leasing of vehicles is of particular interest to companies and self-employed, because you can deduct the lease payments fully tax. Private car buyers will benefit from the lease is not a rule. Leasing is the way, not like a rental car. Unlike a car you have to keep waiting for the car lease as the host vehicle to stand, and insurance. An affordable alternative for drivers who have yet decided on the lease, the lease takeover . Here we simply assume an existing lease contract and often saves costs.

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The worse is often the end

The rude awakening comes when a lease is often only at the end of the term. It all depends on the type of lease. The most commonly offered leases are the so-called residual value of leasing or leasing the mileage. When the residual value at lease maturity is determined whether the car still have the resale value may be, which was previously defined in the contract. If this is not the case because such defects are noted on the car, the customer must pay the difference. At kilometer lease contract in a certain number of kilometers is held, which must be traveled by car during the lease period. If this value is exceeded, the customer pays on it as well. While the mileage can be affected more or less even, this is the residual value is not the case. An accident or sudden defects can make these expensive leases.

The auto financing through a loan is usually cheaper

The auto financing through a loan does require an appropriate credit rating, but the dealerships here are not as strict as many banks. Finally, they want to sell cars here, it is necessary to create additional incentives through low-interest loans. The financing of the car through the car dealer is usually the cheapest way to buy a car. You can, of course, the interest on a loan from your bank with the offer of the car dealer, compare cutting is usually the car dealer, however, much better.