Car leasing is a very popular concept in the western countries and was launched in India very recently. The concept of Car leasing was recently introduced by Mercedes Benz and other small time operators in India. Under a car leasing scheme, an individual does not purchase a car and instead takes the car on lease for a fixed duration. In order to lease a car, one has to make fixed monthly payments till the end of the car lease term. The car has to be returned to the company after the lease term.
Car loan is a type of finance offered to individuals who wish to purchase their dream car but do not possess the financial resources to do so. The bank or lender offers the customer a certain percentage of finance to purchase the car for an agreement that the customer will make monthly payments every month till the loan amount is repaid. The borrower might be required to make a monthly downpayment.
Car lease and Car loan, both help you get your hands on your dream car.A car loan will help the customer spread the cost over time. Car loans from banks offer a much better deal than a car dealer. But the cost of credit varies with a car loan and getting a car loan with a bad credit rating can be very difficult. With a car lease, one has to make low monthly payments and usually servicing for the car is included in the contract. But the customer never owns the car when they are taking a car lease. There are certain restrictions on how and where the car can be used and this might not be a good thing for those who want to own the car for a longer duration.