Buying and Leasing a car

Although buying and leasing an automobile are different processes, both are simply a means of financing a vehicle. When you buy a vehicle, you are purchasing the whole vehicle. The dealer is not interested in how many kilometres the vehicle is driven or its repair costs. In most cases, you are responsible for a down payment, as well as all taxes, delivery charges, any optional equipment or extras you deem necessary, and an interest rate determined by the dealership or a third party. The first payment is then due a month after you receive the vehicle.

When you lease a vehicle the monthly payment is lower than when purchasing a comparable new vehicle: you are only paying for the portion or time of the vehicle that you use up while driving it: its depreciation. Taxes are calculated on the monthly installments rather than up front on the total purchase price and you pay a fee that is similar to the interest rate of a loan.

we’ll help you make an informed decision on car leasing that will save you money while providing you with the car that is right for you.

To summarize, many drivers find they can afford a more expensive vehicle or manage lower payments if they lease rather than buy. However, at the end of the term you, the consumer does not have any equity in the vehicle.

Contact Lotus Car Rental Ltd. to discuss your needs – and we’ll help you make an informed decision on car leasing that will save you money while providing you with the car that is right for you.