It’s the start of a new year, one of the best times to get a new automobile as many car manufacturers are doing strong promotions to clear out older models and make room for new car models, especially for luxury car brands such as Porsche, Lamborghini and Maserati. People could see a lot of ads about car lease specials on every media channel: internet, radio and TV, and those monthly costs are very appealing. The one asks: if the cost is so affordable, must one lease his next car? But lots claim that car leasing is the worst financial decision a person can ever make. Take a look at comparing buying versus leasing, so that one could be his own judge whether to buy or lease a car.

Buy Vs Lease

Auto buying and leasing are 2 similar yet distinct ‘financial items’ that are tailored for varied target markets; it’s an undue statement if a person says that car leasing is the worst choice without knowing the circumstance of that auto shopper. The following is a comparison of leasing and buying:

What Is The Distinction?

Lease: One pays for the downgraded value of the vehicle and a compensation fee for the lease period. The real price for the depreciated value is the negotiated cost of the auto less the fixed residual value based on the cost of the vehicle at the end of its lease term. The compensation fee is the profit one is giving the leasing organization for the loaned depreciation worth for the lease contract which is computed using a money factor.

Buy: One pays for a principal less any down payment in addition to interest for the amount one loaned divided by the duration of the loan (thirty-six to sixty month on average). Interest rates vary based on one’s credit history and the duration of payment contract. Taxes are computed on the purchasing cost of the car which means it would be included in the loan that one is taking out.

What’s One’s Monthly Payment Like?

Lease: Significantly lower as one is only paying the depreciation worth of the vehicle in addition to a few compensation fees as stated earlier.

Buy: Usually much higher as one is taking a mortgage against the complete price of the new vehicle in addition to the interest.

New Car Every 2 To 3 Years?

Lease: Yes, given that most car leases typically last 2 to 3 years. when one returns his lease vehicle, he could lease a new one so he would always drive the newest model.

Buy: No. One would wish to keep his old car for as long as he could in order to optimize his savings.

In the end, auto leasing works better for individuals who do not want to get tied financially, worried by the hassles of auto maintenance and saving cash is a priority. On the other hand, buying a car is good idea for folks who want to maximize the financial advantages and are agreeable to stay with an auto for an extended time.

Such issues could still be a bit confusing. So if one wants to learn more about auto leasing and/or buying, they can contact Brian Ongaro, the VP of Sales and Marketing for Boardwalk Auto Group, and the website of the Boardwalk Auto Group itself. Brian Ongaro and his auto team would be glad to be of assistance to you.

For more information on Brian Ongaro and Boardwalk Auto Group visit http://www.ikarma.de/id/133838.

For more information on Brian Ongaro and Boardwalk Auto Group visit http://www.ikarma.de/id/133838.

Author Bio: For more information on Brian Ongaro and Boardwalk Auto Group visit http://www.ikarma.de/id/133838.

Category: Business
Keywords: Boardwalk Auto Group