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Private leasing or financing? Which method is more worthwhile?

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Private leasing or financing?  Which method is more worthwhile?

Which is better: private leasing or financing? We have compared both methods. PR/Business Insider

The most popular financing methods for cars include leasing and purchasing with financing. But which is better: private leasing or financing?

Private leasing offers both more advantages and disadvantages. However, it is also comfortable and involves fewer risks. What speaks in favor of financing, however, is that the owner becomes the owner of the car after paying the last installment. This can be an advantage in everyday life.

You can find exciting leasing offers in our leasing calculator, for example.

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Cars – like everything else in the world – are becoming more and more expensive. The Automotive Industry Association has one Car cost index created that makes this clear: Accordingly, they are Acquisition costs for new cars rose around ten percent from 2020 up to and including 2022, which can amount to several thousand euros when buying a car. Despite the increased prices, many households cannot or do not want to do without a car… and fortunately they don’t have to, as there are numerous different financing methods for cars gives.

Including: Auto subscription, Vario-Leasing or Partial financing. However, the most popular models include the Private leasing and the financing. But which of the two methods is better? To answer this, we should first take a closer look at leasing and financing:

What is private leasing?

Private leasing is car leasing for private individuals. In contrast to commercial leasing, there are no tax breaks and other benefits, but otherwise the two financing methods are identical. This is how it starts Found a suitable vehiclebefore contacting a dealer Contract for term and annual mileage is completed. There will be one Monthly Rate due. Various can do this one-time payments come.

Beim Leasing The dealer remains the owner of the car and he undertakes to take the vehicle back after the term has expired. Depending on the type of leasing agreement (a distinction is made between Kilometer and residual value leasing), however, the dealer can Back payments demand or any Refund credit. Because the dealer remains the owner, he sometimes has even more say. For example, it can be regular Maintenance at authorized workshops demand.

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This is what you should know about financing

Also at the financing must monthly rate be paid – for example to one Bankon a car dealer or one Car manufacturer, who serve as lenders. However, financing is more of a question classic installment paymentfrom Ownership is transferred to the buyer at the end of the financing. So because of this installment payment there is also one Durationwhich is usually a little longer than with private leasing.

After the buyers become owners of the car with this financing method, they are significantly more flexible when it comes to maintenance and workshops concerns. But with so much freedom comes Responsibilitybecause if the car is to be resold at some point, the new owners will have to take care of it independently. So there is no lessor who has to take back the vehicle under predetermined conditions, which means Unpredictable factors such as market value and residual value can become a risk.

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Private leasing versus financing: the two methods in comparison

So far so good. But which method is better? We have them Advantages and disadvantages of private leasing and financing looked at more closely.

These are the advantages of leasing…

For private customers, which we are focusing on in this comparison, leasing offers a whole host of advantages. First of all, private leasing is characterized by relative short running times out of. That’s how it can be done The vehicle must be replaced at regular intervals with a new, more modern one. Because the lessor has to take the vehicle back after the term has expired, this also arises no risks for the lessees. This (coupled with the firmly regulated and mostly transparently broken down costs) makes it possible high planning security with maximum flexibility. Since most leasing offers too without deposit The initial purchase is also comparatively cheap.

… and the advantages of car financing

However, financing a car can also be beneficial. Above all: At the end of the financing there is this Propertywhich means that owners can decide for themselves how and under what conditions you want to resell your car. The same goes for things like Maintenance and the choice of the workshop assigned to it. That is also positive flexibility at the Determination of the monthly rate and term. This also offers a high Planning security. Unlike most leasing deals there is also no fixed mileage, which should be particularly exciting for frequent drivers. Additional kilometers when leasing can quickly become expensive.

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The disadvantages of private leasing…

Of course, there are also disadvantages to both forms of financing. Private leasing may be convenient, but lessees have to be willing to do so depending on the dealer’s conditions – for example with regard to carrying out maintenance work and who is allowed to carry out this work. This could get expensive! In addition Leasing is generally a little more expensive, because the dealer also wants to make money from the transaction. Finally can hidden costs as well as any extra costs also push up the supposedly low price. This particularly applies to excess mileage or damage that reduces the residual value. In addition, the dealer remains the owner of the vehicle and therefore has rights and claims, which can lead to frustration.

… and the disadvantages of financing

When it comes to financing, owners have it in place significantly more responsibility – in every respect. As owners, you have to take care of maintenance, resale, etc. yourself. This creates a significantly higher risk. Since it is never possible to definitively predict how the value of a vehicle might change, buying with financing could also be a possibility Loss-making business be made.

Overview: Comparison of the two methods

We have all the advantages and disadvantages of private leasing and financing in this one Overview summarized:

Private leasingfinancingAdvantages:fixed term vehicle becomes property manageable costs for the initial purchase flexibility when determining the term low risk no fixed mileage high planning security high planning security regular vehicle changes possible Disadvantages:no ownership, high personal risk possibly higher costs, a lot of personal responsibility Additional costs for additional kilometers or damage that reduces residual value Maintenance specified partly workshop connection

Conclusion: private leasing or financing – what is worthwhile for whom

And which form of financing is better? Private leasing or financing? As is often the case: Depends on. Leasing has both more advantages as well as disadvantages. But that doesn’t mean that private leasing is fundamentally better or worse. Instead This form of financing is suitable for drivers who regularly want a new vehicle and are willing to pay a reasonable surcharge, which can take various forms (for example additional costs for maintenance, for additional kilometers driven or a possibly slightly higher monthly rate). That’s what they are for Terms are short and the risk is lowwhich also makes leasing the right choice for anyone who doesn’t want to take care of tasks such as maintenance and resale themselves.

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Who, on the other hand, just wants a car that should be part of their own fleet for as long as possibleshould rather buy and finance. If reselling the vehicle isn’t part of your plan anyway, the benefits of being an owner outweigh the risks. Also Frequent drivers might prefer to be able to call the car their own at some point so that they don’t have to justify driving more kilometers.

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Find cheap leasing offers

The best purchase and financing offers for your dream car are available directly from the dealer. If leasing is your preferred financing method, you can Scroll through our leasing calculator in advanceto get an overview of the available offers. You can find a detailed description of our calculator in this article: With the car leasing comparison calculator you can find the best leasing offers for private and commercial use. Otherwise you can also start searching directly under this article:

*Disclaimer: We look for products and services that we think you might like. The selection is subjective but editorially independent. We have affiliate partnerships, which means if you make a purchase using a starred link, we receive a small commission. Our partners also include the price comparison portal Idealo, which, like Business Insider GmbH, is a subsidiary of Axel Springer SE. This does not influence our recommendations and the selection of products. You can read more about this here: Insider Picks at Business Insider – who we are, what we do and how we test products. The content is independent of our advertising marketing. You can find our guidelines for journalistic independence here: www.axelspringer.com/de/leitlinien-der-journalistischen-unabhaengigkeit

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