Cash, financing or leasing? When it comes time to buy or renew the car, after choosing from the infinite list of possible cars on the market, we wonder which payment method is the best or the one that suits us best.
Depending on the means of payment for which we choose, Cash for Cars, to do it with financing, or to rent it through a leasing contract, each one has one or more advantages or disadvantages, according to their needs, budget and even the whim for have the car of your dreams.
This is the ideal means of payment, with this means the problem of monthly payments that represent a fixed expense for months or years is avoided, in addition to the costly interest generated by the financing and that over time represents a loss of money .
You should also keep in mind that a new car starts to depreciate from the moment it passes through the dealership’s exit door, so a new car is not the best investment, but you do have the ability to buy the car from cash you can enjoy without having to worry about payments, except for maintenance costs, taxes and insurance obviously.
When you buy a car for cash, it immediately becomes your property, so the title will always be in your hands. The problem with paying in cash is ditching a good deal of cash to buy an asset that loses much of its value in a short time.
Most car buyers prefer to purchase their cars this way, and there are many reasons why.
The main reason to get a financed car is that you don’t need to have big savings in order to buy the car. In addition to this, you can find very attractive plans with interest rates of 0%, which means that you would be paying the same as in cash, only that over a period of time.
Of course, you have to remember that to find a good interest rate you must have a good credit history.
Paying a car in installments will also require making a down payment, which in most cases, which is generally between 10 and 20% of the value of the car, so you will also need to have good savings to buy a car of this way.
Likewise, if you want to buy a car while you are still paying for another, you may find yourself with several limitations along the way, especially if you still owe more than the car is worth.
The leasing option is ideal for those who like to have a new car every two years.
By paying a monthly rent and without having to pay a down payment, you take possession of the car to use it as you like, and when the term is over you don’t have to worry about selling it but simply returning it to the agency.
In addition to this, the car will always be under warranty and covered for minor damages. Of course, insuring it is on your own, and sometimes it is necessary to have full coverage.
You must also dedicate yourself to taking care of the car so that it does not have damage such as scratches or excessive wear that may incur penalties at the end of the contract.
Also remember that at the end of the term you will not have a car to sell so you will have to start the rental process again in the next model you want or also choose to keep it permanently.