• Page Views 2206
  • To give you a quick guide for LEASING VS FINANCING OWNERSHIP
    Leasing – You do not own the vehicle. You can use it but it has to be returned at the end of the lease unless you have chosen to buy it out at the end.
    Financing – You own the vehicle and keep it at the end of the financing term. That’s yours to keep for good

    UP FRONT COST
    Leasing – it may include the 1st monthly payment, security deposit, registration and other fees and charges.
    Financing – down payment, taxes, security deposit, other fees and charges.

    MONTHLY PAYMENT
    Leasing – lower than financing, you are paying partly for the vehicle depreciation and a little bit of monthly payment
    during the lease term, plus rent charges like interest, taxes and fees.
    Financing – higher monthly payment than leasing. You are paying for the entire purchase price of the vehicle, interest and other finance charges and fees.

    EARLY TERMINATION
    Leasing – you have to pay any early termination charges if you will terminate the lease earlier than it should be.
    Financing – you have to payoff the amount if you end the loan early.

    VEHICLE RETURN
    Leasing – you may return it at lease end, pay any end lease costs, and walk away.
    Financing – you may have to sell/trade in the vehicle.

    KILOMETER RESTRICTIONS
    Leasing – there are certain number of kilometer limitations (often from 20,000 – 24,000 kilometers per year)
    Financing – you may drive as many kilometers as you want but… be aware of.. the higher your mileage is… the lower the resale value of your vehicle.

    EXCESSIVE WEAR LIMITATIONS
    Leasing – you have to pay charges for exceeding those limits when you return it
    Financing – no limitations but again excessive wear may lower the resale value of your vehicle.

    FUTURE VALUE
    Leasing – you have nothing to worry about, the lessor or the leasing company take the risk of the future value.
    Financing – you have the risk of the vehicles market value when you trade or sell it.

    END OF TERM
    Leasing – you have the option to buy the car (CASH or FINANCING), walk away or return the car to the dealer or RE – lease it again for the second time.
    Financing – at the end of the term, you have no further obligations.

    Now, deciding whether to lease or buy a car depends on so many things but most of all … it’s you.

    I welcome letters or inquiry regarding your experiences in purchasing a car or questions before buying the right vehicle for you. This column may not be the perfect solution but I know these can help you decide the right car, somehow…

    Share

    Leave a Reply

    New Posts Recently publish post More

    • 24 May 2017
      21 hours ago No comment

      Pinoy tracksters bag 4 medals in Singapore Open

      Philippine bets delivered one gold, three silver and three bronze medals in the 79th Singapore Open Track and Field Championships held recently at the Singapore Sports Hub National Stadium in Singapore. University of Perpetual Help System Dalta standout Francis Medina won the lone gold medal for the Philippines when ...

    • 24 May 2017
      23 hours ago No comment

      Joshua out to revive boxing from the pits

      EVERYBODY’S talking about Anthony Joshua, the bombastic British boxer. After Joshua stopped Vitaly Klitchsko last weekend, he immediately earned tons of adulations. Well, the fact that Joshua survived a fourth-round knockdown and then scored an 11th-round knockout is not something to sneeze at. Applause, applause! It is always a ...

    • 24 May 2017
      1 day ago No comment

      Pacquiao as a family man

      There, indeed, is a sumptuous buffet of stories revealing some surprising aspects of Manny Pacquiao’s life that inspire parents and fans alike to emulate. One is his being a trough and through family man. With what he aimed for in his first week of sweating it out already attained, the ...

    • 23 May 2017
      1 day ago No comment

      Duterte declares martial law in Mindanao

      Philippine President Rodrigo Duterte declared martial law in Mindanao on May 23. Duterte placed Mindanao under martial law after deadly clashes between government security forces and Islamic State group-linked militants in Marawi City. The announcement was made by his spokesman at a press conference in Moscow where Duterte was ...

    • 23 May 2017
      2 days ago No comment

      Mulawin vs. Ravena all set to take flight beginning May 22

      It has been 12 long years since GMA Network marked history with its highly-successful and ground-breaking telefantasya, Mulawin, which captivated the hearts of many Filipinos all over the country. This May, GMA raises the bar even higher and takes flight again with the much-anticipated sequel to the highly-acclaimed saga, ...

    %d bloggers like this: