Getting ready for your new vehicle? Then weighing up pros and cons of car leasing vs Renting vs buying can greatly help you make the best deal. It’s worth considering the implications related to these three types of contracts before making any decisions. Your friend is leasing a car does not mean you also have to lease a car. Or maybe he bought a brand new model and you want to go for the same option. It’s better to know where you are putting yourself in before it’s too late. There are other factors you should consider in order to get a complete picture of leasing vs Renting vs buying a Car.
1. Type of Vehicles
Although there are some people that offer used-cars for lease, keep in mind that typically leasing vehicles come from car dealers. That means leased vehicles are all brand new cars. This is how it works. The client contacts a logistic leasing company. Then he initiates a car leasing request by specifying the vehicle he needs. Selection of the color, the latest high-tech features, and other preferential options. Then the leasing company buys it from a vehicle supplier and then leases it to the customer alongside the value-added services. That means the customer will get more comfort, latest features, luxury and will be charged a monthly fee. If you want a brand new car then buying or leasing a vehicle is the best option. It’s very rare to find a brand new car rental services because of the short-term commitment.
2. Ownership in Car leasing vs renting vs buying
The only person who owns the vehicle in these 3 types of contracts of car leasing vs renting vs buying is the car buyer. When the leasing or rental agreement ends, then the client returns the car to the owner. After leasing a vehicle for 2, 3, 4 years or renting for a while, it still does not belong to the client. However, leasing a car typically involves a possibility of ownership at a cheaper price when the lease ends. The financial terms are just a bit different than purchasing a vehicle. So if you wish to have your own car then buy it. Alternatively, you can specify the possibility of ownership in the leasing agreement terms. That’s the best option. And whether you rented a car for an event, a wedding, or any other purposes, you are just charged for the period you used the car. No ownership option available.
3. Cost implications
The cost implications are another key factor to consider when weighing up for car leasing vs renting vs buying. In fact, it is the decision maker for many people. In terms of costs, owning a car will be more economical than leasing one in most cases. It’s mainly because leasing contracts are more beneficial to leasing companies. A logistic service company that does not profit off their customers will not be in business for long. One of the pros of vehicle leasing is that you pay less up front for a luxury car. Additionally, it also relieves you of the stress of having to resell your previous car at a reasonable price. On the other hand, purchasing a vehicle requires a huge cost upfront.
The world of leasing is complex, and the dealer is an expert at it. So if you don’t educate yourself you will be at a distinct disadvantage. That’s why it’s important to assess your needs and the purpose of that car you are planning to get. Is it for business, just a luxury or for family purposes? When you answer this question it becomes easier to make a choice. Note that in only a few cases, you’ll find an individual leasing a vehicle on his own. Typically, it’s an agreement between a leasing company and an organization. Those organizations offer leased vehicles to their employees. Mostly they are expatriates. They deal with logistic companies that provide leasing services. However, some individuals can afford this option just as a lifestyle choice.
5. Maintenance & Repair Services
Renting a car does not involve any warranty. You break a side mirror or a tire, you’ll be charged for it. Sometimes, you even pay for damages that you didn’t cause. Actually, you are the one responsible for the repair and maintenance of the vehicle. Also, it is not convenient for an emergency. Let’s say, you need another car to drive immediately, after getting involved in a small accident. A leasing service company can take care of it and facilitate that for you. So, in terms of cost maintenance, the best option between car leasing vs renting vs buying, is definitely leasing a car
6. Terms of contract
When it comes to terms of contracts, the agreements of buying or renting a car are much better and more flexible than leasing contracts. Generally, vehicle leasing agreements specify a limit for the mileage. There are additional charges for excessive mileage such as more than 20,000 miles a year. Whereas there are no restrictions when you buy a brand new car or rent it. That’s why it’s important to read and understand the clause of the leasing contract before jumping into it. This will save you from making extra payments.
7. Period of Use
The major difference between leasing, renting and buying vehicles is the period of use. Leasing a vehicle is a longer-term commitment, through which you use the car as a regular vehicle for personal use. Keep in mind that mostly a lease agreement may run from 1 to 5 years. Rented vehicles generally have a much more narrow commitment. Some people rent for a week or two on vacation, just for a very short term.
Finally, what is the best: Car leasing vs renting vs buying? Actually, it is very difficult to determine which option is best for you. Because the answer to this always revolves around the affordability, lifestyle choice, and the long term effects. However, it is never beneficial for an individual to lease. He ends up paying more for the newer models unless it’s a lifestyle choice. Another option to explore is to buy a recent-model used car, which is always cheaper than leasing. Since someone has already paid for the huge depreciation. If you need an affordable car, truck or van rental services in Nairobi Kenya, you can contact Famio Services. We ‘ll be happy to assist you.