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Lease or buy? What's trending in 2023!?

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Lease or buy? What's trending in 2023!?

There are many aspects to consider when looking for a new car. In addition to choosing the model and drive, you also have to consider whether you want to lease or buy the car. If you can pay for it in cash, you have the chance to get discounts from many retailers. So you can save money when buying. If you choose one that you want to ride for a long time, you have more freedom. Since the car is yours, you can choose how you want to modify, repair or insure it. In contrast to leasing, you can also choose the insurance freely and do not have to worry about the mileage. Another advantage is the flexibility when selling. If your circumstances change and you want to sell it, you can do so at any time. Depending on type of financing (no cash purchase), however, you must make sure that it has already been paid off. Only when you have paid back the full purchase price are you completely independent. If you are still in the repayment phase, you usually have to discuss the early sale with the financing partner.

Lease or buy?

To buy a car you need a lot of money to pay for it. In addition, the value drops sharply in the first three years after purchase. And if you pay for the car with a loan, the rate is usually higher than with leasing. In the event of an accident, you also have the risk that it will end up being worth less. And if you have an accident, you usually only get the residual value, which is very low because of the high depreciation, for example. And if you want to sell the car, you have to do everything yourself.

Lease or buy? What's trending in 2023!?

When is leasing effective, what are the benefits?

The leasing model has many advantages, primarily for those who do not have a large starting capital. In addition, it is easy to calculate because the monthly costs remain the same over the entire duration. An important advantage of leasing is the Planning security. You decide how long you want to lease the vehicle. In most cases, the leasing period is 24-36 months and the expenses do not change during this time. With the monthly leasing rate, you pay a flat rate for all fixed costs such as repairs, insurance and the purchase price. Another benefit of leasing is that you don't take any risks if the vehicle's value goes down.

Lease or buy? What's trending in 2023!?

If the car market changes significantly and your vehicle is worth much less, the risk lies with the lessor. And if you work independently or as a freelancer, you also benefit from the leasing model for tax purposes. You can deduct the leasing installments from your taxes and save money. Leasing a vehicle also gives you the opportunity to quickly upgrade to a newer model. Due to the usual term of 2 to 3 years, you can drive a new vehicle at short intervals and thus always be up to date. By regularly using a new vehicle, you reduce the risk of high costs due to wear and tear and necessary repairs, which can also save you money.

The disadvantages of leasing?

You don't own the car if you lease it. This has various disadvantages, for example if you want to apply for a loan and could offer the vehicle as security. You could also miss out on a higher resale value if the market changes and the type suddenly becomes more popular. The leasing contracts are mostly short-term and cannot be terminated prematurely. If your situation changes, you still have to continue paying until the end of the term. With leasing, you are bound by fixed conditions.

Lease or buy? What's trending in 2023!?

Maintenance is strictly prescribed and you cannot decide for yourself which workshop you use. When it comes to insurance, you usually have no options and have to stick to the leasing contract. Another disadvantage is that you have to plan ahead. You have to set a certain number of kilometers per year, which is stipulated in leasing contracts. If you drive more, you have to pay extra at the end of the lease.

What factors determine the leasing rate?

The monthly payment for your lease car usually depends on various factors, such as: Make and model of the car, features and purchase price of the car, age of the car and annual mileage, length of financing, contract terms of the lease.

Which is cheaper – lease or buy?

The question of whether you should lease or buy a car depends on many personal factors. Leasing is usually more advantageous for freelancers or the self-employed because it allows them to take advantage of tax advantages. In all other cases, many aspects are important. You should consider whether you intend to drive the car long-term and for many years, or whether you would rather change frequently. In addition, your financial possibilities are decisive for the decision. If you have enough equity, you're more likely to buy. The interest rate on a loan is an important factor when deciding whether it is cheaper to buy or lease a car, especially if you need to take out additional credit to buy the car. It is best to compare both options based on your financial situation.

And finally ...

  • Deciding whether to buy or lease a car ultimately comes down to the individual pros and cons associated with both options. It's important to weigh your own criteria related to cost, usage, contract terms, and personal preferences to make an informed decision.

Lease or buy? What's trending in 2023!?

Are you planning to buy a new car and are you therefore looking for financing? Or should the modified baby and its attachments simply have the best possible insurance? Then ours Credit, financing, leasing, insurance & Co. categories exactly the right place to go for information. And also cheap financing for Accessory parts is there. Is the new one forged wheel, the planned Airride air suspension or the one you want foiling too expensive? Then a little one might help Financing in the process of implementing the modification on the vehicle. And also the topic Leasing or the vehicle sales are not neglected here. Just click through the posts and get the answer to your questions.

Of course, that wasn't the end of it!

tuningblog has countless posts on the topic Credit, financing, leasing, insurance & Co. in stock. Do you want to see them all? Just click HERE and look around. The following is an excerpt from the last contributions from this category:

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Lease or buy? What's trending in 2023!?

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About Thomas Wachsmuth

Thomas Wachsmuth - He has been an integral part of tuningblog.eu since 2013. His passion for cars is so intense that he invests every available penny in them. While he dreams of a BMW E31 850CSI and a Hennessey 6x6 Ford F-150, he currently drives a rather inconspicuous BMW 540i (G31/LCI). His collection of books, magazines and brochures on the subject of car tuning has now reached such proportions that he himself has become a walking reference work for the tuning scene.  More about Thomas

a comment

  1. I also have to do the HU for my car again. Interesting that leasing does not have this problem. I will pass this on as well.

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