Ownership is perfect for some people and in many ways, the ideal solution if budgeting isn’t a necessity. For people who crave variety, don’t have much money for a lump sum payment, and simply can’t afford to buy a car that they like, leasing becomes a more attractive option. As always, it comes down to how much money you have in the bank and how much you can afford to pay each month to lease a car.
When Is Leasing the Right Choice?
1. If you do not have sufficient funds in the bank to purchase a vehicle outright, then leasing is for you. For people who wish to drive a great car that is out of their budget, making monthly repayments can be a way to secure your dream vehicle.
2. For those people who wish to keep their cash in their pocket for ‘a rainy day’, leasing is ideal. When you choose to lease your vehicle, it means you can save your money for other things in life such as a holiday or home appliances.
3. If you don’t want to get stuck in the same old car for the next decade and love variety, leasing is a great option! You don’t have to keep the vehicle past the leasing period and that means you can immediately turn it over at the end of the term. You can lease again or even buy another vehicle. And you might even have the option of buying the vehicle you leased. So ownership IS possible at some point, just not during the duration of the lease period.
When Is Buying Right?
1. If you have a car in mind that you absolutely love and you have the amount required to purchase, then buying is a terrific option!
2. If your credit isn’t quite as good as it should be, buying is an easier option through a car finance in Melbourne. Leasers need better credit than buyers.
3. If you appreciate the concept of ownership, always go with buying.
4. When you want to gain equity in your vehicle, you must buy. Equity means that at some point you might be able to use your car as financing collateral later on and what you’ve paid into it can be a future line of credit to use for borrowing on other loans.
Special leases
A novated lease is available to employees who might drive a vehicle for work. Your employer pays for the lease of the vehicle for you so that you don’t. This is ideal for employees who use their vehicle for work and it gives you a great reliable car and the possibility of having your taxable income decreased, so it really pays off at tax time.