There are many advantages to financing a car of your own over choosing to lease one, especially if you require access to a vehicle for the long term. This is because financed vehicles offer more freedom and flexibility and you have the ability to call the vehicle your own once you complete the payments. No matter what you choose to use the car for, you will enjoy far more advantages and benefits by choosing financing over leasing.
Yours
Although monthly payments may be a bit higher at first glance, the truth is that financing a car is significantly more cost-effective in the long run. This is because a car loan will eventually be paid off, typically between 48 and 72 months, and the payments will completely stop following that date. However, leasing a car will mean that you never truly own it, causing you to continuously pay for the car from one month to the next and eventually causing you to pay more than someone who financed might pay for the same vehicle.
In addition, the car will never have your name on the title, meaning that you cannot modify the vehicle as you would like according to road safety laws. You cannot upgrade the machinery, alter the colour, or make any other modifications that would cause your lease agreement to be invalidated. Only a finance company such as Barclay Finance can ensure that the car is eventually yours and that you may modify it as you see fit from the moment that you first purchase the vehicle.
Restrictions
Leasing a vehicle will often cause you to have restrictions, meaning that you cannot drive it beyond a certain number of kilometres. However, a financed car may be driven across the continent and back ten times without any limitations, which is ideal for anyone who is looking to travel far and often. Whether you have family in another state or just want to explore the Outback during a road trip holiday, financing will ensure that you never face limitations on your kilometres.
No Equity
Just as financing a house will build equity, financing your own car will build equity in that car. If you choose to lease, you will not build equity and be forced to return the car after the leasing term is completed, leaving you with no choice but to take out another agreement for a new vehicle. This will cause more trouble in the long run and potentially take away a number of benefits associated with the building of auto equity.
Penalties
Most auto leases require that you not break the lease without the painful price of a high fee and some companies charge as many as six payments as penalty for a broken lease. However, a financed vehicle can always be sold to another person, allowing you to pay off the loan and get rid of it in one action at the same time. No matter how you look at it, the choice to finance over the choice to lease is always best, especially if you plan to use the vehicle for many months or years at a time.