Car Financing: Buying vs Leasing, guaranteed car finance

By Philip Reed

Since most people don't have the cash to buy a new car, it often comes down to a decision between leasing and buying with the help of an auto loan. Here is a quick look at the main benefits of each type of car financing.

Lease or Buy? It's Also a Lifestyle Decision

First, it's important to understand that the decision of whether to buy or lease isn't just a dollars-and-cents decision. It depends on the intangible importance you give to owning a new car. If the image of driving the latest model is essential to you, then you'll justify spending more money for this privilege. If you look at a car as merely transportation, then owning the newest car on the block will be lower on your priority list. Give these questions some thought as we move on to the more tangible issues of buying with the help of an auto loan versus car leasing.

When Car Leasing Makes Sense

There are several aspects of car leasing that make it very appealing: Low down payments, low monthly payments, low maintenance costs. However, the main advantage is that a customer (with good credit) can get a car without putting much money down, and the monthly payments will be lower than if you bought the car with the assistance of an auto loan. Furthermore, since most cars are under warranty for three years, the car will be fully covered for mechanical breakdowns during the length of the lease. (Note: Edmunds.com editors recommend three-year leases as making the most financial sense.)

About Guaranteed car finance

The guaranteed finance specialists we can exclusively approve you for car credit regardless of your previous credit record. With our guaranteed finance all car loans are secured on the vehichle you are buying and not on your credit history. Unlike other guaranteed car finance companies we do not use high-pressure sales techniques or make promises we can't keep