Credit Tip Tuesday: Should You Lease, Finance or Buy a Car?

Plastk wants to help you understand if leasing, financing or flat-out buying a car is the best option for your bank account. By explaining and highlighting the benefits and disadvantages of the three most viable options, we hope to help you understand what makes the most sense for your next car and that we can bring you one step closer to making a decision about leasing, financing or buying your next car! All in all, the decision to lease, finance or buy a car is based on a thorough examination of your personal budget and driving habits.

Hi everyone it’s taina and welcome to another episode of credit tip tuesday today we’re going to talk about everything you need to know about buying leasing or financing a car and which is the best option for you don’t forget to like comment and subscribe to our channel as we’ll be posting videos weekly without further ado let’s get into this video the first

Option that we have for you is leasing a car leasing is when elisee that’s you gives monthly payments to a leaser that’s usually a bank or the owner for a certain period of time this is usually around two to three years and you can only have a certain mileage on the car so it’s usually around 12 000 to 15 000 miles every time you lease it there are some benefits

To leasing usually the down payment’s a lot smaller the monthly payment can also be smaller than if you’re paying off a loan and you get a new car every couple of years so if that’s something that you’re into and you like to have brand new cars this might be the option for you however there are a lot of cons some of them are that you don’t actually own the car

At the end of it so you’re making monthly payments but you’re not actually owning it at the end similar to renting an apartment another con is that you have to sometimes return the car in the exact condition that you received it this can be really stressful as obviously there’s wear and tear on the car as you drive it the last con is the mileage limit so whatever

The contract states if it’s 15 or 20k you can’t go over the mileage limit or there will be some financial implications the second option we have is financing a car this is when you borrow money directly from the bank financial firm or credit union you agree to pay a certain amount of money for a certain period of time usually it’s around three five or seven years

There are huge benefits to financing a car the main one being that you actually own the car at the end so you’re making these monthly payments and this goes towards your car however this means that you do have to have a down payment which can be a huge con for financing as some people may not be able to afford it as with most things the better credit you have

The more options that you have so it might be in your best interest if you’re thinking of financing a car to make sure you’re building your credit so that by the time that you get to the point where you want to finance the car you’ll receive a better rate and pay less money monthly the third option is buying a car outright if you have the cash for this this is the

Most recommended option as it’s the most cost effective in the long run you don’t have to pay interest rates or finance fees or anything and you own the car at the end so customization anything you want is up to you there are some cons for buying a car outright obviously you need to have the money up front and there you have all the responsibility of that car so

The maintenance costs the repair costs everything however it is yours at the end so if you can sell it anytime you want and you can still make money off of the car however cars are a depreciating asset which means the more you drive it the more you use it and the older it gets the more the less value it has hopefully this video helped clear up any confusion you

Might have about what leasing or financing is and which one is the better option for you if you have the cash we always recommend going to buy your car outright however financing might be a better option for you the good thing is if you have good credit you can get a better rate and you might be able to afford the dream car that you want but for monthly payments

And own it at the end hopefully this helped make your decision a little bit easier and thank you so much for watching don’t forget to like comment and subscribe to our channel and as always if you have any specific questions that you want us to tackle leave them down in the comments below i’ll see you next week

Transcribed from video
Credit Tip Tuesday: Should You Lease, Finance or Buy a Car? By Plastk Secured Credit Card