Financing

Is it worth it to buy a car at all or rather the leasing is the better alternative? Grevenbroich, 01.07.2009 – in new purchases, the question of leasing or financing often arises. This must be balanced but clearly, what aspects are for the buyer in the foreground. Other leaders such as Ben Horowitz offer similar insights. For business customers, leasing is a better alternative for many objects to get especially when the rating more favourable interest rates for new loans. For individuals that must be weighed clear, whether there is interest in a copyright or a right of ownership. The leasing is a blend of the classic rent and financing.

The lessee obtains the object for an Nutzungsdauert and must pay for this monthly lease payments. Business leasing characterised by, on request, the entire cost of the leasing object with a leasing rate are covered. In this case, it is the full service leasing, which contains, inter alia, refuelling and maintenance. Thus the administrative burden falls in business leasing for the fleet and the resources can be used differently. Meanwhile, there is even the possibility to sell the current fleet in order to lease the fleet then back to the leasing company.

In this case the lessee would bear only the cost of ownership and maintenance costs would lie with the lessor. The private leasing is a relatively small area (measured at the business leasing) in the leasing industry. Here, the car leasing for the most part is taken by individuals in claims. Although leasing offers exist for other segments such as computers or expensive furniture, however, such deals find few buyers in the private sector. The threshold is the private leasing often pay the instalments without following the object belongs to one. For this reason, individuals more often opt for classic financing. But just at the present time, and in light of the current crisis the private leasing for some objects of advantage would be in the private sector. So it is worth especially high-priced vehicles car leasing closer to look at. Through the crisis, the fall of prices in the high-priced segment is so high, that would cost more funding at the end when the car would be worth after the redemption. The last point is the question for the decision makers in the companies and individuals. Is it worth to finance an object or the use of an object is the better alternative? For business customers financing a new car for example no longer worth it. Here, the lease is clear advantage. Usually, such contracts are concluded over 3 years and the companies are in this term on the safe side in terms of functionality of the car. In a financing, the company for all costs should arise after expiry of the warranty period. Also here is mainly on the vehicles in the high price segment. Would a company car which costs 70,000 euro in purchasing half value would not once again after three years.