on 31, Dec 2018

Buying vs Leasing: Which Is Really Better [Infographic]

It's not always easy to buy the car of your dreams. Especially when it comes to financing the car it's pretty difficult for a person with a stable job and a fixed monthly salary.  It takes a lot of time to collect such a huge amount of cash for a car and most of the times it's not easy to get by without one. In a world where the car has become a necessity, we don’t always have to buy a car to cater to our travelling needs.

We rent a house for some particular amount of time when we can not afford to buy one, so why not a car? Car leasing has been around for some time now but recently got popular in the Indian market. As the standard of living getting higher, even if a person is not able to afford some brand of a car, he can still manage to lease it at a lower cost. Just like mynewcar.in says, buying a car is not the only way to get behind the wheels of a car.

So how do you lease a car?

Leasing a car is just as easy as renting anything. If you were anyway going to opt for a financial solution, you will be paying the same amount you would pay as emi or even lower in some cases. Some dealers like mynewcar.in even let you lease the car with zero down payment.

The first thing to do is find a dealer that provides the option of leasing a car. Next thing to do is submit the required paperwork and make a down payment if applicable (usually 20% of the sticker price.). Provide the financial details and you are done. The leased car will be given to you immediately and you will be paying the rent of the car every month till the contract ends.

The car will cover servicing costs if you have opted for that option but in this case, your instalments are going to be higher than usual. If the car gets accidentally damaged the company will even repair or replace your car without any additional charges.

One more factor to consider here is leasing a car has mileage limitations and the rate of every mileage range is different so you should always select a car lease contract according to your travel needs.

So is leasing always better than buying? Well, it's up to you to decide. Let us look at some more factors to consider while choosing to buy or lease a car.

Buying a car:

Buying-a-car2019

  1. You pay the entire amount at once using cash, loan or financing.

  2. Ownership: you own the vehicle for as long as you wish

  3. Up-front cost- consists of negotiated cost including cash price/down payment, taxes, insurance plus the registration fee.

  4. Monthly payment is usually as similar as emi but in India, the car EMIs get higher when you buy a car.

  5. You have to take care of reselling or trading your old car on your own

  6. You can drive your car as much as you want as there is no minimum mileage limit while reselling the car.

  7. You can modify and customize the vehicle the way you want to.

Leasing the car:

Leasing-a-car2019

  1. You only pay for the depreciation value of the car. A new car depreciates pretty quickly in the first 5 years. After the contract end which is usually preferred for 5 years, you will be only paying the difference of the initial cost and the depreciated cost which is usually lesser than your emi instalments.

  2. The vehicle you leased is not owned by you. You will have to return the car back to the company once the duration of the contract ends. The good part about this is you can opt for a new car after the contract ends and you do not even need to worry about reselling the car after it has depreciated in value.

  3. The upfront cost consists of no down payment (depending on the dealer) and the rent that covers finance, insurance, maintenance, accidental repairs and admin benefits(depends on the plan you choose)

  4. As you are only paying for the depreciation value, the rent is usually lower than your monthly instalments.

  5. When the lease ends, you pay the end cost and return the vehicle. The good thing about this is you can go for a better car later without having to worry about reselling the old car. You can drive a new car more often. Also this way you won’t be missing out on any new gadgets or features that are only offered in new models.

  6. The main issue here is that you may exceed the number of minimum distance. So we suggest you to go through the plans available and choose the one that suits your travelling needs. If a month you exceed the number of miles, you will have to pay extra depending on the distance.

  7. Another don’ts while leasing a car is that you cannot customize or modify your car according to your needs or taste. The car is to be returned the way you received it while leasing it.

MyNewCar_Infographic-buy-vs-lease

Let us compare the benefits of buying vs leasing a car:

Leasing:

  • Less expensive.

  • You can drive a better model of the same car or opt for an expensive car with a low budget.

  • You do not have to worry about reselling or trading your car.

  • You can opt for a recent version every single time. That enables you to take advantages of the new features and gadgets every single time.

  • If you are leasing a car for business, leasing a car will provide you with a tax break.

  • You do not need to worry about the maintenance and repair costs

Buying:

  • You are the owner of the vehicle you are buying

  • Your car has a resale value

  • You can modify and upgrade your car in any way you want.

Whether it is buying or leasing, choosing the right option can be pretty confusing. In the end, it all comes down to what type of person you are and what are your expectations from the car.

You should lease a car if:

  • You switch your car frequently and want to drive a new car every few years

  • Your vehicle mileage is low on an annual basis and is under the limit.

  • If all your expectations are meeting just by leasing a car, go for a car lease to pay lower down payment and instalments every month.

  • If you have only these two requirements and if you do not care about ownership, leasing is something you should definitely consider as you will be paying lower instalments and zero or no down payment.

You should buy a car if:

  • You want to own a car! Let’s face it, some of us are those type who wants to use only the things they own. Some of us are those people who think of the car as a part of the family and cherish it for decades. If you are that kind of a person buying a car is something you should go for.

  • If you are a type of person that drives often and has higher mileage range, buying is for you since you do not have to worry about the minimum mileage of the car.

  • If you do not mind paying extra just for ownership of the car, you should definitely buy a car.

So how will you decide on the right option?

Go to a good car dealer that promotes car leasing and buying. Test drive the car you want to buy/lease. Search for best offers and deals on the said car. Weigh out the pros and cons of both option and decide according to your necessity.

Mynewcar provides leasing of a car with zero down payment. Mynewcar also provides an option of leasing with no mileage restriction which is specially provided keeping businesses and travel enthusiasts in mind. Mynewcar also offers a single payment lease if you wish to get rid of monthly payments. Click here if you want to know more about leasing a car.

Mynewcar provides easy and hassles free car leasing. All you have to do is choose a car and a variant and mynewcar will give you an estimate of lease of the same car the next second. Click here to find out the monthly payment for leasing the car you like.

Selecting a car is not easy, with soo many options and features sometimes, it gets difficult to select a car. Keeping that struggle in mind, Mynewcar also came up with the car advice. Get brand neutral car advice from professional advisors from search till delivery with delivery, live chats, phone and email support. Get honest and real-time feedback from the trusted sources only on mynewcar.in.  

The ‘advice’ column is a set of articles mainly designed to answer the day to day car related questions of a customer. From buying advice to new car launches, latest offers and automobile news, mynewcar.in got, you covered for all. Not just that, mynewcar also provides you with car maintenance tips and also with car driving tips which makes caring for your car much easier. You can even get much needed general information on the cars here. If you do not understand something, you can always ask mynewcar on its comment section below the article. You can also contact customer care and even write your question in the comment section below.

So, search and compare, buy a new car, exchange your old one and even find a financial solution for your new car. Mynewcar.in offers All these options just under one site.

So what are you waiting for? Visit mynewcar.in to book the car of your dreams today. Stay tuned to mynewcar.in for more updates, latest news and growing trends in indian automotive industry.


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