When the time comes to acquire a vehicle, there is a lot that needs to be considered. What type of car should I go for? What colour looks the best? What vehicle is good in terms of fuel economy? The list is endless. But firstly, you need to decide how to pay for the vehicle, and one of the best options is car leasing.
There are many different ways you can pay for a vehicle, including car leasing deals, such as the option to take out a novated lease on a used car, personal contract purchases, hire purchases, bank loans, and, of course, cash.
Let’s begin with the latter. Cash is an option most won’t consider, as, unfortunately, most people can’t afford to buy a vehicle outright. And, those who can don’t want to, as they don’t want to tie up their funds.
A Novated lease is usually the best way to get a car cheap. This is a tax-effective, financial arrangement, which gives you the ability to salary package your vehicle. More and more people are going for this option today, as it makes the most sense financially. As you don’t pay GST, you are automatically going to save ten percent. Not only can you save on the purchase price of the car but there are actually savings to be made in terms of running costs too.
A personal contract purchase (PCP) can be tempting thanks to the low monthly payments, but people often overlook the balloon payment at the end, and so can land themselves in a bit of bother.
You then have the option of a hire purchase (HP). With this, you essentially buy the vehicle outright, but in instalments. This may seem like a more manageable solution, and you do indeed get to own the car, but it is one of the most costly options.
A bank loan proves to be cheaper in many cases. Moreover, a bank loan is not achievable for a lot of people, especially those with a bad credit rating.
Finally, personal car leasing provides a great alternative, however, the downside is that you won’t own the car. With leasing, you can drive a new model of vehicle every three years or so. You have the luxury of upgrading to a newer model when you return your car to the personal car leasing firm. This ensures you are always driving around a new and stylish vehicle. This is the most convenient way to drive a new car regularly if this is what appeals, but you will have nothing to show for your money.
Hopefully, you now have a better understanding of all of the different options available to you!