Compare Buying Versus Leasing a Car

  V.S.P.Vamsi

For most people buying a car (especially a new car) is the second most expensive type of purchase they will make in their lives (buying a house is usually the most expensive). Going about buying a car involves some big decisions, decisions that buyers should be informed about before they take the plunge. You and a dealer enter into a contract where you buy a car and also agree to pay, over a period of time, the amount financed plus a finance charge. The dealer typically sells the contract to a bank, finance company or credit union that services the account and collects your payments. A lease is basically a long-term vehicle rental agreement, which offers exclusive use of a car for an agreed length of time (and mileage) at a fixed monthly rate. With the changing trends in the automotive market, automotive manufacturers are coming up with new trends in order to promote sales of the new and already existing vehicles. From offering discounts, providing additional benefits and doing every single thing they can to promote vehicle sales, automotive manufacturers have now come up with a new trend that is slowly gaining popularity in India. In today’s featured, we will take a look at automakers’ new move of providing the cars on a lease basis. Car leasing is a cost-effective way of driving a brand new car without the hefty expenditure associated with purchasing. A car lease lets you drive a new vehicle without paying a large sum of cash or taking out a loan. To lease a car, you simply make a small down payment less than the typical 20% of a car's value you'd pay to buy followed by monthly payments for the term of the lease. When the term expires, you return the car.

Keywords- Buying a Car, Leasing a Car

Unique Identification Number - IJEDR2004043
Page Number(s) - 268-281
Pubished in - Volume 8 | Issue 4 | December 2020
DOI (Digital Object Identifier) -   
Publisher - IJEDR (ISSN - 2321-9939)

  V.S.P.Vamsi,   "Compare Buying Versus Leasing a Car", International Journal of Engineering Development and Research (IJEDR), ISSN:2321-9939, Volume.8, Issue 4, pp.268-281, December 2020, Available at :http://www.ijedr.org/papers/IJEDR2004043.pdf