Car Leasing Loans
You might decide that you want to lease a car rather than buy a car. This means that you can change your car in for a new model if you want. If you lease, you will have a lower monthly payment than if you finance a car. You will only have to pay tax on the monthly payments, rather than the full purchase price of the vehicle. Another advantage of leasing a car is knowing that your car will be under warranty for the period that you drive it.
If you lease a vehicle with the intent to purchase it, often, financing your car immediately will lower your final costs. If you don’t normally keep your cars for five years, then leasing is a wiser option.
When you are budgeting for your lease payments, take into consideration the number of miles you intend to drive. If you will be driving more miles than the lease allows, you might be charged high rates for these extra miles. Consider buying an extended miles package at the beginning of your lease. It is easier to buy miles at the start than to add them at the end of your lease. Also remember that even though you will not own the car at the close of the lease, you still need to maintain the car to a certain degree because lease contracts generally include a clause about “general wear and tear” to the car, not complete disregard.
You can get a loan for a lease from a bank. In order to get a lease loan, your credit rating will have to be higher than if you were applying to finance your car.
If you choose to lease a car, read all of the fine print carefully. Leasing is slightly more complicated than purchasing and financing a car, and so the more informed you are the better able you will be to make the right decision about your vehicle choices and payments.
