Student life is the best experience for most people but has its drawbacks. As a student, you must be mindful of many things. You have to see where you are spending your money.
You can’t be reckless about buying stuff that doesn’t help you in the long run. It is just how you would try to avoid taking classes that do not align with your future goals.
Luckily now you can easily complete a custom essay and help yourself sail through even the toughest of subjects, but when it comes to cars, things go differently.
So, if you wish to get a car for yourselves because it is getting tough going around the town without a vehicle, you are probably wondering what the best way is. Getting a car is a huge decision and should be made after considering all the factors around you.
So, to get a car, you can either buy a car against a loan or lease a car. Buying a car as a student can be tough, you will need to make a huge down payment, and you will have to commit to the car for many years.
This is especially a waste if you are an international student or even planning to settle somewhere else once you complete your studies.
So, you can consider leasing a car. There are two leasing models: Financial and Operational. The operational model is employed by corporates mostly where they get the car’s market value when returning it. However, the Financial model is suitable for students who pay monthly installments when they want to keep the car.
Let us analyze if leasing a car is worth it if you are planning to save money as a student.
When you plan to lease a car or something else, you don’t have to make a huge down payment. You are just required to pay the rent in advance and the insurance, depending on what type of lease plan you are going for. This is a bit convenient for students as they don’t usually have that kind of money to make a big payment.
When leasing a car, most companies provide coverage for insurance and maintenance of the vehicle. Some lease plans also cover other recurring expenses making it a fuss-free experience. You don’t have to worry about these expenses and can still enjoy the car.
Since the dealership provides maintenance, it becomes pretty convenient for you as you don’t have to worry about the repairs and other. Most of these dealerships also provide pick-up and drop facilities.
However, when you get your car, you have to personally ensure that the maintenance trips are made regularly and at your own expense.
Great Option for a short-term plan
If you are looking to get a car for a short term, say less than 3 years or so, leasing is a great way to get the benefits without the fuss.
Get the latest models
The best part about leasing a car is getting the latest car models. Even if you have already leased a car before, you have the option of exchanging it for a better model, of course, with some extra charges. It is really ideal for people who are car enthusiasts and want to experience different cars.
More Cost in the long-term
If you compare buying a car and leasing a car in the long term, leasing is the most expensive option. At the end of your loan installments, you are left with a car under your name if you buy the car, but that is not the case with leasing.
You pay more than you would have paid collectively for the installments, and you end up without a car anyway.
Caps & Restrictions
Everybody wants to accessorize their cars the way they want. But it is not possible in the case of leased cars. At the most, some dealerships provide that flexibility, but each change that you make needs to be approved by them first.
Also, some lease plans to cap the distance you could travel in the vehicle in a month and penalize you if you exceed this capped limit. You cannot return the car before the decided time without facing early termination fees or a penalty.
While leasing a car seems to be a better option, it may seem more cost-effective than it is. You still have to make the monthly payments, and at the end of the leasing period, the car is still not yours.
However, you can consider the option if you wish to lease it for a really short time. Especially if you are saving money, you must decide carefully about your financial situation and how much you can commit to a car.