Why I Think Leasing A Car Is Better Than Financing A Car

Ever since the age of fifteen, most of us dream of owning a car. Though at the moment of buying we aren't as picky, there's always a hidden place in our hearts for that mind blowing car in which sight we sigh. Setting dreams aside though, when acquiring a vehicle there are three main ways to do so: through financing, cash-paid, or through a leasing. Through these few lines, I'll explain why I think leasing a car is better than financing a car (also read this basic guide about car leasing;credits to JuliaCar.com); and even better than paying cash for it.

Though financing is well known as the action of providing required capital for 'x' or 'y' project or ambition; it's also well known that the unpredictability of economy and it's consequent fluctuating interest rates makes financing a risky business.

In fact, even after you have agreed a price with the car salesman, if you choose to finance your car via dealership, there's another factor to be taken into account. There's a commission for the finance executive that will enable you to get your car. This means that, behind your back, the deal is still in the clouds. In fact, most dealerships make their big bucks not on the car they sell but rather on the final stages and calculations of the sale in itself; all those little details 'not included in the deal price' such as warranties, warranty extensions, alarms, upgrades and many others.

On another note, if want to buy a flaming new car with your surplus cash, there are a couple things you need have in mind. First of, depleting your life savings to buy a motorized machine is not the most advised thing to do. Instead, weight your options as for the destiny of your pile of Benjamins:

Would you pay more interest financing a car than what you would earn from investing your money in something certain such as a savings certificate? Also, how is your credit health? Are you in a lot of debt already? If you don't have a good credit rating, the interests to pay -if found- will be up the roof. If such is your case, financing might not be your best shot.

But -and this is what I want you to go home with- what if I told you there was a way to always be driving a new vehicle, a car always under warranty and with the slightest of needs for maintenance? And not just any vehicle, but fancier, better equipped wheels than what you'd probably be able to afford through cash payment or financing.