Should I Get a Luxury Car Lease? – A luxury car is one of the many dreams of the average American; bigger, more comfortable, full of devices and filled with the latest in car technology. They are expensive to buy and to maintain, sure, but if you can pay for one, what stops you from buying it? The only obstacle could be how you will pay it. In that case you have three options to pay: with cash, with a classic car loan or with a lease.
How Does A Luxury Car Lease Work?
Why not use a car loan from the bank instead of a luxury car lease? Are there any advantages? What is the difference? In the case of a typical car loan, the bank lends you the money so you can buy the car. You become the owner and the only thing that the bank does is discount a monthly amount from your account.
In the case of a luxury car lease, things are different. The financial institution buys the car for itself and it rents it to you. After a determined period of time of paying the car, you have the option to keep it or return it to the bank. There are a series of financial advantages when leasing a car, especially for businesses.
What about individuals? It depends. Leasing has lower monthly payments than a traditional loan. That’s because there is a determined amount of money that you will have to pay at the end of the lease if you want to keep the car. What you may do is use that determined amount of money and invest it during the period of the leasing. That way, after three years, you have made your money work for you.
So, if you are planning on buying a luxury car, the lease looks quite attractive. Consider that luxury cars are very expensive. With a lease you could make very low payments and the difference that you saved, for the moment, can be invested. That’s a lot of money that can be placed on stocks or bonds.
Where Can I Obtain A Luxury Car Lease?
Almost any bank or any other kind of financial entity can help you. It can be the same bank where you save your money or any other one. You will find, though, that there are differences. It is recommended that you ask about all of the payments, insurance coverage, and be sure to read the lease contract carefully. An informed consumer rarely suffers from headaches.