When considering whether to buy your next car or perhaps rent it out and what would be the most efficient deal for you, most consumers agree that from a purely financial point of view, buying your next car would be the best option.
Obviously paying the money in full is the best scenario as you avoid financial costs with this alternative. You can also visit https://prepmyvehicle.com/ to get online auto dealer reconditioning software to know more about selling and buying a car.
But for most of us, and for the scope of this article, we will continue to examine purchases or leases that involve financing.
Rent may seem attractive to you in the short term because the monthly rental payments tend to be much lower than the monthly payments under the purchase agreement. Why? With leasing, you basically only pay for the parts of the car that you will use. It's like sharing the price of a pizza with someone.
You only pay for the pieces you eat. In auto terminology, the portion remaining on the lease is called the salvage value of the car. The higher the residual value of the car, the less you will use the car while leasing, so the payment for the portion you use (rent) tends to be lower.
For many drivers, the decision to buy a car is not based solely on reality. And that's good. It's very personal. Leasing usually allows you to drive a new car.