Car Loan vs Car Lease: You can keep a car not only through loan but also through lease. However, both the options have their pros and cons.
Car Loan vs Car Lease: Due to the Corona epidemic, the trend of having your own car for commuting has increased in the changed circumstances. Apart from this, having a car with you is also a status symbol for some people. To get the ownership of the car, some people raise capital for a long time, while some people take loans from banks. However, apart from this, the option of leasing a car has also become prevalent for some time now. Like a car loan, you have to pay an installment every month for taking a car on lease. In both the situations, you get your own car, but which option is better for you, decide it by understanding the advantages, disadvantages and limitations of both.
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How to decide on Car Loan vs Car Lease
- You own the car purchased through a car loan and you can keep it for a long period of time, whereas in a car lease, you get the ownership of the car for a few years like usually two-three years.
- Car leasing is a better option for those who wish to change the car every three to four years.
- If the car is being taken on lease, then maintenance can also be included in its contract, that is, you will not have to spend on the maintenance of the car taken on lease. However, it must be seen in the contract whether it is not included or not. On the contrary, you have to bear the maintenance cost of the car taken through the loan.
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- After the lease period is over, the leasing company has to return the car. There is no need to go through the process of car valuation and sale.
- You cannot travel long distances with a leased car. In case of car lease, you can travel only for a certain distance but can travel anywhere with the car purchased through loan.
- Another disadvantage of leasing a car is that it cannot be customized according to likes and dislikes.
take decision like this
If you do not want to use the car for long distances and your job location changes in a few years or you wish to change the car after some time, then you can decide to take the car on lease. If you have a passion for driving different models of cars, then you can take the car on lease.
(Input: bankbazaar.com)
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