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Pros and Cons of Auto Financing & Leasing
In addition to the housing costs, buying a used or a new vehicle is another significant expense that the families and the individuals incur when they wish to settle down. Those of you who do not wish to bear the high interest rates of a car loan, or find it a daunting task to save a lot of money to buy a car, how about considering the option of a lease? Financing vs. leasing a vehicle For Americans, a vehicle, be it financed or leased, is considered to be a major expenditure. Though in the short run, leases might seem cheaper, on the whole, buying a vehicle happens to be a fairly cost-effective alternative. However, understanding the pros and cons of financing vs. leasing a vehicle will certainly help you make a more informed decision about what is ideal for you as well as your family. Leasing a vehicle When you lease an automobile, the bare bones of the agreement is that one party allows the other party to use a particular vehicle or car for a stipulated amount period, and in exchange, periodic payments are to be made. If there’s no option in your contract to purchase the vehicle at the expiry of the term, you’ll have to return it to the owner.
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