Unlike long-term rental (LLD), rental with option to purchase (LOA), or leasing, allows the lessee to buy back his vehicle. Buying or renting a car, what is the right calculation? What are the advantages and disadvantages of car leasing? Should I take out specific car insurance ? We explain to you!
Is leasing worth it?
What are the advantages of an LOA for an individual?
- You have a new vehicle, which you can change regularly.
- You pay monthly rent for a maximum period of 5 years. If you intend to buy the vehicle, it is better to accept higher rents , which will influence the end of the lease on the residual value of the car.
- The purchase term corresponds to 5 to 10% of the new price.
What are the disadvantages of an LOA for an individual?
- During the term of the lease, you must respect the mileage established in the contract.
- Any overrun of this mileage being subject to additional charges, the final bill may prove to be high.
Can you buy a leased car without down payment?
Yes, it is possible to buy your car on lease. On the other hand, carefully examine the conditions of the offer before signing the contract, because in the end, the financing could cost you more than if it had been guaranteed by a prior contribution.
Is it better to buy or rent a car? Our calculator
Leasing can be interesting for the motorist who uses his vehicle for professional reasons and who is approaching the end of his career . As the vehicle was rented new, he was the only driver and therefore knows its condition perfectly. By having paid higher rents, the financial burden associated with the buyout is less heavy, which is perfectly suited to the declining income associated with retirement.
Certain situations may lead to buying back the leased vehicle before the end of the contract. It is then necessary to settle the lease according to the intermediate residual value to which are generally added penalties of balance. Before embarking on this buyout, it is therefore essential to ascertain the final cost of the operation.
So, leasing or buying ? If the monthly payments of an LOA are lower than those of a car loan, in the first case, in the end, the car will cost you more. It all depends on your ability to pay at the time of financing.
