| Your car is one of the most expensive | | | | at the end of this period, you give back the |
| purchases you will ever make. Probably the | | | | car and walk away. Leases have a number of |
| only thing you will buy that costs more than | | | | advantages over buying the vehicle. The |
| your car is your house. You wouldn't just | | | | payments are generally lower as you are not |
| accept the first mortgage you came across, | | | | paying for the entire value, just for the |
| and likewise you shouldn't just accept the | | | | price of leasing it. |
| first vehicle financing option that comes | | | | |
| your way. You will have a lot of options in | | | | You also don't have to worry about selling |
| how to finance your car. | | | | the car when the leasing period is over, as |
| | | | the dealer owns it. Leases may also include a |
| You can buy the car outright. If you would | | | | buying option at the end of the period, which |
| like to opt for this, you will need to borrow | | | | will allow you to buy the car if you want to. |
| the cash in the form of a bank loan. | | | | The one thing to be careful about when |
| | | | leasing is that there may be heavy penalties |
| This should generally be medium term, over | | | | for early termination. |
| period of about two to five years. It is | | | | |
| generally not advised that you secure | | | | Some Advantages |
| borrowing over your home but this may be | | | | |
| necessary in order to get the loan or in | | | | The other popular type of vehicle financing |
| order to get a better rate. Shop around for | | | | is dealership financing. With this option, |
| the best rate, from banks, other lenders and | | | | the car dealer arranges the car financing. |
| also on the internet. Rates will vary widely | | | | They will sometimes offer very attractive |
| so it is a good idea to shop around as much | | | | rates as they want to encourage people to buy |
| as possible. | | | | the cars, however, sometimes their rates are |
| | | | extremely bad and you will want to be |
| Leasing | | | | familiar with what's available from |
| | | | alternative sources before opting for |
| If buying the car outright in this manner is | | | | dealership financing. Some advantages of |
| not an option, you may wish to consider | | | | dealership financing will include |
| leasing the car. Leasing will never make you | | | | convenience, multiple options, and special |
| the owner of the car. You pay a monthly fee, | | | | offers on selected models. |
| every month for the period of the lease, and | | | | |