Do you need a car for your company? Are you wondering what will be better for you: leasing or car loan? You don’t know how these two solutions actually differ and which of them will suit your needs better? Is buying a car in installments a good idea? What benefits of car leasing are of particular importance? What is the cost of car leasing? All these questions often make us sleepless. We will try to give you some tips!
Car loan. What is a car loan?
A car loan is one of the solutions that allows you to raise funds for your own car. Let’s start by specifying: what exactly is a car loan? This is a specific financial product that allows you to credit the cost of buying a car or other vehicle authorized by the bank. Therefore, the funds received as part of the loan have predestination. In this connection, for example, you can take out a loan for a passenger car. However, you have to be aware of the fact that the bank will ask you for some security. As a form of security, often used include:
• registered pledge
• total or partial transfer of ownership
• assignments of rights resulting from the possession of an AC policy
How high the installment of a car loan will be a liquid issue, determined among other things by the amount of the loan. Car lending in the form of a car loan is possible for both new and used vehicles. When choosing a favorable car loan, it is worth paying attention to several factors, for example, the interest rate, type and comprehensive cost of the loan.
Let’s move to the next question: is it profitable to lease a car? Let’s try to explain what leasing is in practice? Generally speaking, leasing allows us to operate the car, but its owner is still the lessor. Of course, the use of the subject of the lease is associated with the need to incur costs (leasing installment) by the lessee. It is worth noting that it is possible to lease used cars as well as new cars.
How much does passenger car leasing cost? When deciding to lease a vehicle, we usually ask ourselves: what will be the costs of car leasing? What influences them? Is leasing profitable? There are a few things to keep in mind, including:
• interest on car leasing
• amount of car leasing installment
• type of leasing: operational or financial?
• insurance expenses
Of course, these are only examples of factors that should be borne in mind when analyzing the cost of car leasing.
Comparison of leasing and credit: what to choose? Leasing vs car loan!
We’ve come to the definitions we need, now let’s get to the bottom: what is the main difference between credit and leasing? Which is better, leasing or car loan? As always, much depends on the individual situation of the potential lessee, his expectations and needs. Let’s present some basic differences between these two solutions. Leasing and car loan – comparison:
Formalities. Reducing formalities is one of the benefits of car leasing, which for many companies is very important, especially if we care about time and we want the car to be available to us in the shortest possible time.
Flexibility regarding vehicle selection. According to specialists, in the case of used cars, car loans may be more flexible, although the age of the vehicle is of great importance in this case.
Tax issues. In the case of leasing, it is important to be able to influence the tax deductible costs. What we include is strictly dependent on the type of leasing: operational or financial.
Leasing / crediting time. Of course, a lot depends on individual offers, but sometimes in the case of car loans we can count on finding a proposal with a relatively long loan period, but the age of the car is important.
We emphasize that there are many more differences. We’ve provided examples only. When making the final decision, it is worth considering, among others, financial issues, i.e. the profitability of car leasing and car loan as well as the needs of our company, i.e. what we care about the most?
SUMMARY: what is more advantageous leasing or car loan? What is worth choosing: leasing or car loan for a company? The answer to these questions is not clear-cut and a lot depends simply on what the company’s needs are and what benefits it prioritizes.