In this world, different people have different type of mentality on the idea of buying a car. There can be people who will like the idea of buying a new car while some will prefer buying a used car and use that for as long as they can and after that buy a new car. Then, there are people who might prefer leasing new car so that they can enjoy the new features of the new car and pay the money for the car in instalments and they can save a lot of money by not investing the whole amount at once. It is up to the personal view of the person thinking of buying a new car.
The leasing option was once only available to the businesses and to the customers who wanted luxury cars. In today’s world leasing is available throughout the market for all classes of cars, ranging from subcompact cars to luxury SUVs.
A brief discussion on the comparison on leasing and buying a new car is provide to help people make the correct decision. Before that, understanding the concepts of leasing and buying should be understood by everyone.
In very simple terms, by the use of leasing the person do not have to pay or invest the whole price of the item at once. In the leasing process, only the depreciation money has to be paid by the user over the term of the lease, and in addition the interest and the additional fees. There is one down payment after that the documentation is signed by the user and the rest of the amount is paid in monthly basis with a very small amount of interest rate. It may look very simple, but the process of leasing a car is very complex and might be confusing with all the array of numbers that are shared during the process. There are few terms related to leasing, that everyone should be aware of, these terms are: Capitalized cost, residual value and money factor.
Capitalized cost: It is also known as cap cost and is simply the price of the product or the car for this discussion. The user must start negotiating before buying the car. Any discount on the capitalized cost is known as cap cost reductions.
Residual cost: The cost of the item or the car in this case at the end of the lease period is known as the residual value.
Money factor: The rate of interest that is paid by the user on the lease is known as the money factor. There are several online money factor conversion tools that can be used to do the money factor calculation but, it can also be done manually.
A very simple calculation for the people who want to lease as car. The amount that is paid by the user is the capitalized cost minus the residual value in addition to the interest. There are other charges like the lease origination and the registration cost for the vehicle. If someone wants to lease a SUV that has a capitalized cost of $30,000 and has a residual value of $15,000 then the person is liable to pay $15,000 with the additional costs and the interest. The dealers are very much clear about the drive off costs of the car and the lease agreement. Most popular lease period time is two and three years but there is always a space for negotiation. Now, let’s come to the concept of buying and financing.
Buying a product simply means to pay off the whole amount at once without any additional cost or interest rate. For an example, if the price of a car is $30,000 then, the amount mentioned is the final amount that includes all the necessary amount that needs to be fulfilled to take the car home like the taxes.
Financing is simply taking loan from a lender or any financial institute like the bank, credit card companies or any finance company. In financing the user makes a down payment and pays the rest of the loan amount with the interest in a series of equal monthly payments. The term that is used to denote an auto loan is called tern, and these terms range from a few years up to seven or eight years. In financing, the money lender holds the title of owner until the whole amount is paid off. After the financing is clear the person can have the ownership of the vehicle. In America, financing is more preferred than leasing a vehicle.
Firstly, there can be low monthly payments. As, the user have to pay only the depreciation of the lease so, the monthly payment is almost always lower in case of a lease than buying and financing a car. Although, this cannot be the only criteria that a person should take into account while buying a car. Leasing can get a person a nicer car with the same monthly payment which is also same as buying.
Another advantage of leasing a car can be, a person can get hands on to the latest technologies that are being implemented in the modern cars like the adaptive cruise control, driver assistance, automatic emergency braking, GPS assistant and many more. There are other features like the support of Android Auto and 4G LTE data connection.
The manufacturer will cover the warranty and the maintenance of the vehicle. The user is free from the expensive repair costs.
It is easy to trade in a car on lease than buying one. In some cases the sales tax is also not applicable on leasing a car. Leasing also have small down payments.
MyAssignmenthelp.com has been helping students of USA for over a decade now. We have dedicated teams of experts who provide assignment help to students in New York City, Boston, Chicago, etc. Owing to their extensive knowledge and years of experience in academic writing, they successfully cater to searches can someone do my assignment in USA or can experts write my assignments.
Just share requirement and get customized Solution.
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat. If you are unable to calculate word count online, ask our customer executives.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
fast, clear instruction and get feed back very fast as always. i recommended this when you in hurry or tons of assignment
Thank you so much for your help. It\'s really appreciate. Well done and again Thanks for your help.
Awesome work. I didn\'t have to ask for a rework at all. The tutor did everything I asked and provided an great service. Will continue to use them in the future.
Very good quality work. Liked the service very much. There is response time is very punctual. But the price for the assignment is a bit expensive.