You might have heard about property leasing several times to date, but have you paid heed to car leasing? Yes, auto leasing is a better option than buying if you want to flaunt a vehicle in mint condition to your neighbors. The former comes with lower upfront costs, lesser monthly payments, and still, you get a brand new car to drive. But do you know how to lease a car or purchase it (of course, if you have an excellent credit score)? You can contact an approved auto loans leasing company in Calgary that deals in four-wheeler sales and services.
They have a wide range of fancy cars available for sale, from hatchbacks to sedans and SUVs to MUVs. But before you lease a motor car, you must check out available options for buying it as the latter will give you complete ownership of the vehicle, not the former one. For example, mortgage and financing are the two best ways to get a car for its entire lifespan. But if you neither have a good credit score nor a property to use as security for a bank loan, vehicle leasing might be the right choice for you. A dedicated approved auto loans leasing company will guide you through the whole process of auto leasing if you show your interest in them.
Let’s see what four reasons are to lease an automotive product than get its complete ownership:
1. You can lease the car for 2 to 4 years
The main reason why you should lease a set of wheels instead of acquiring it is the low time duration. It means you don’t have to pay the total price of the vehicle for its entire lifespan. Instead, you can rent it for 24 to 48 months by paying a fraction of the car’s original cost. When you lease an automotive inventory, instead of registering it in your name, you have to pay only the residual amount that the car is worth for the time you utilize it.
For example, if you get a car for 36 months, you need to pay for the value of the oil burner that it would be in those three years. If you don’t know the residual amount, we tell you how to calculate it. You have to subtract the depreciated value from the vehicle’s original price to determine the residual amount. You can understand depreciation value as the difference in the cost of the car when you bought it and when you sell it after a few months or years.
2. You can get approved for a lease easily
When you decide to lease an automobile, it’s somewhat easier for an approved auto loans leasing company to get you sanctioned for it. It is the main reason that most customers prefer car leasing over buying. Another reason is the difference in customers’ creditworthiness. It means if you have good credit, scores of lenders, including banks, will offer you loans, but if not, it’s better not to dream about owning a car. However, that doesn’t mean you can’t reap the benefits of having a stylish vehicle. You can, but for that, vehicle leasing is the possible option for you.
3. You can enjoy driving a wide range of cars
You might think for a moment that the car sellers would generate a massive profit by leasing the same car multiple times, but it’s not just advantageous for them but you as well. How? The more cars they lease out, the higher their expectations for repeat business down the line.
Similarly, when you have used a car for a couple of years or more, you can exchange that car with a new variant or choose a different vehicle altogether, for that matter, once your lease expires. Thus the approach to lease oil burners instead of becoming its owner is a better idea for enjoying a considerable number of vehicles on the road in the least possible time.
4. You have to pay a lower interest rate on leasing than buying
Do you know what interest rate lenders charge when you lease or finance a car? Considering you have an excellent credit background, the lenders might charge you an interest rate from 2% to 5% on the given amount. But if your credit is not that great but average, you can expect the financing institutions to charge an interest rate between 6% to 9%.
But when it comes to buying an automotive product, Canada’s average car loan interest rate starts from nearly 4%. Thus, if you are in the market to own a pristine car, you can expect to pay a 4% to 6% interest rate on your car loan. So, the difference between leasing a vehicle and getting it until it expires (something between 12 to 13 years) is visible here. So, the fact of the matter is car leasing is a better option for you if you failed to build an appreciable credit to date.
The bottom line We hope you got the answer to whether car leasing or financing is fruitful for you. So, suppose you are on the hunt for a trusted automobile dealer in Canada that can provide you vehicle leasing or financing options. In that case, you must visit their websites and get in touch with them through virtual or physical communication methods.