07.25.06
Motortorque offers a good overview for consumer options to finance a car. So you´ve decided that you need a new car? Now, what is the right finance option to pay for your new car? There are several payment plans that you can choose from, and depending on your own circumstances, some may be more suitable than others.
Contract Hire / Car Leasing
One of the most popular forms of car finance, the car leasing company buys and owns the car that you have chosen. You then lease the car by paying the agreed monthly instalments over an agreed period of time. This finance method gives a lower monthly payment than a personal loan, allowing you to get a better car for their money. Most people like to lease for a term length that coincides with the length, in months, of the manufacturer´s warranty coverage so that you´re covered if something major goes wrong with your car. At the end of the lease, the customer simply takes the car back to the leasing company. Alternatively, the individual may be able to auto lease swap (sponsor) with another individual during the duration of the lease contract - though check with your leasing company first. Now, more on Motortorque’s auto finance options.