Should you lease or buy a car?

After the COVID-19 pandemic, the demand for personal mobility has been increasing steadily in India. To cater to this growing demand, several automobile manufacturers have started offering a car leasing facility. Many young users find this facility a more accessible and more convenient option than buying a car.

However, whether you should lease or buy a car boils down to your personal preferences. You can compare the benefits of leasing vs buying a car to make an informed decision.

Enjoy car ownership benefits without lightening your pocket
 

When you lease a car, you are required to pay only monthly subscription charges. You can keep the car as long as you want by making monthly lease payments. On the other hand, you will have to pay the entire on-road price of the vehicle if you wish to buy it. So, leasing a new vehicle allows you to enjoy the benefits of owning a car affordably.

No worries about arranging the down payment
 

Even if you buy a car using a car loan, you have to make a down payment to the dealer. Usually, lenders in India provide up to 80% financing of the on-road prices of cars. However, the remaining amount has to be paid by the buyer as a down payment. If you don’t want to make this down payment, you can choose to lease a car rather than buy it.

Why get an old car when you can get a new one?
 

Those who don’t have adequate finances to buy a new car generally opt for second-hand cars. However, now that you have an option to lease a new car, you don’t have to settle for a used car even if you don’t have the required funds with you.

Change your car whenever you want
 

Several people want to change their cars at frequent intervals. However, huge buying costs prevent them from doing so. If you too belong to this category of people, car leasing is the perfect option for you. If you have a car on a lease, you can change it anytime with the manufacturer by paying a nominal amount. Depending on your chosen car, your monthly subscription amount may change or remain the same.

So, is leasing or buying a car better?
 

After knowing the benefits of leasing a car, you might be tempted to think that leasing a car is always better than buying it. However, there is a catch. On leasing a car, you can enjoy the benefits of car ownership, but you never actually own the car. It has to be returned to the manufacturer as soon as you decide to stop paying the monthly subscription charges.

So, if you want to keep a car for the long term, it’s better to buy it. To make an informed decision, you should always compare the benefits of leasing a new car vs buying a used car.

Once you’ve bought the car of your dreams, you must also choose the right FASTag to make your travels and commutes smoother. Choose IDFC FIRST Bank’s FASTag, called FIRSTForward, for availing of a range of benefits that can help you leave behind those torturous queues at the tolling plazas. Know more here

If you wish to avail of a car loan, you can apply for an IDFC FIRST Bank car loan online and enjoy lower EMIs for a convenient tenure. With an IDFC FIRST Bank car loan, you can enjoy benefits like 100% on-road financing, nil foreclosure charges, and doorstep assistance.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.