| Your car is one of the most expensive purchases | | | | period of the lease, and at the end of this period, |
| you will ever make. Probably the only thing you | | | | you give back the car and walk away. Leases |
| will buy that costs more than your car is your | | | | have a number of advantages over buying the |
| house. You wouldn't just accept the first | | | | vehicle. The payments are generally lower as you |
| mortgage you came across, and likewise you | | | | are not paying for the entire value, just for the |
| shouldn't just accept the first vehicle financing | | | | price of leasing it. |
| option that comes your way. You will have a lot | | | | You also don't have to worry about selling the car |
| of options in how to finance your car. | | | | when the leasing period is over, as the dealer |
| You can buy the car outright. If you would like to | | | | owns it. Leases may also include a buying option |
| opt for this, you will need to borrow the cash in | | | | at the end of the period, which will allow you to |
| the form of a bank loan. | | | | buy the car if you want to. The one thing to be |
| This should generally be medium term, over | | | | careful about when leasing is that there may be |
| period of about two to five years. It is generally | | | | heavy penalties for early termination. |
| not advised that you secure borrowing over your | | | | Some Advantages |
| home but this may be necessary in order to get | | | | The other popular type of vehicle financing is |
| the loan or in order to get a better rate. Shop | | | | dealership financing. With this option, the car dealer |
| around for the best rate, from banks, other | | | | arranges the car financing. They will sometimes |
| lenders and also on the internet. Rates will vary | | | | offer very attractive rates as they want to |
| widely so it is a good idea to shop around as | | | | encourage people to buy the cars, however, |
| much as possible. | | | | sometimes their rates are extremely bad and you |
| Leasing | | | | will want to be familiar with what's available from |
| If buying the car outright in this manner is not an | | | | alternative sources before opting for dealership |
| option, you may wish to consider leasing the car. | | | | financing. Some advantages of dealership financing |
| Leasing will never make you the owner of the | | | | will include convenience, multiple options, and |
| car. You pay a monthly fee, every month for the | | | | special offers on selected models. |