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Increasingly popular with the French, is leasing a profitable solution for buying a car?

 

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Is it profitable to buy your car on the lease?

Our consumer habits are constantly changing, and so are our needs. While in terms of housing the goal of all is to be an owner, it is quite different in terms of the vehicle. Indeed, since the arrival of leasing, more and more French people are opting for this option which allows them to change vehicles often and therefore to be able to adapt them to the changes that occur in their private lives.

It’s also the perfect way to learn about electric or hybrid cars for two years and then see if this is the type of vehicle you enjoy driving. In addition, some leasing formulas include maintenance and repairs, an option much appreciated by those who are not mechanics for a penny and who want to be able to have a car always in good condition without fear of being ripped off or ruin.

But what are the different leasing offers? And in the end, is it a profitable option or will it cost you more than taking out a loan to buy a car from a dealership? A little topo on the subject of leasing by Elite Auto.

What is leasing?

Leasing is a process that simply consists of renting a vehicle from a specialized agency for a long period. Generally, rental contracts last two to three years, but it is possible to have longer ones depending on your needs.

The car remains yours: the grey card is in your name and you can go where you want, simply once the contract has expired, it will potentially have to be returned to the rental company. There are two options available for this type of contract: LLD (Long Term Rental) and LOA (Lease with Option to Purchase). In both cases, as explained above, you rent the vehicle for a period determined by a contract, however, there are some differences to note.

Indeed, with the LOA the repairs and the maintenance of the vehicle are included in the contract, which is very pleasant since it allows you to take a thorn out of your foot by making sure to always drive in a car in good condition without spending astronomical sums in the garage. The other aspect, and not the least, which differentiates the LOA from the LLD is the purchase option. When your rental contract comes to an end, you have the option of purchasing the vehicle at a preferential rate if you wish.

What about the financial aspect?

In truth, to say which is more profitable between leasing and buying a car is not so simple since it depends on many criteria. For example, if you are not a person who takes care of your vehicle and you often scratch it or knock it when parking, for example, LLD leasing is certainly not for you because these risks to cost you dearly in repairs.

On the contrary, if you like to drive recent and new cars, it will cost you less to do so through leasing contracts than buying a vehicle from a dealership every two years, even taking into account the resale price of the first vehicle. Also, the advantage of leasing is its accessibility.

Indeed, many people would like to drive recent and new cars but do not have the means because the banking or credit establishments ask for a contribution proportional to the price of the vehicle before granting the credit. With leasing, this problem does not arise. In addition, the monthly payments will be much lower than loan repayment. 

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