Car purchase: Should I buy or rent my car?

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Leasing has made its mark on the Danish car market in recent years. Many lease the company car, but there are also many Danes who have moved into the private leasing market. For the ordinary Danes, it can immediately seem very unimaginable whether to lease out, or to buy the car. Here in the guide we treat private leasing versus car purchase.

Leasing gives you budget security

One of the great benefits of leasing is the budget security it provides. You know what you pay a month. At the same time, service is included in the monthly benefits and there are no unpleasant surprises. It can be done if you own the car and it breaks. For example, if you buy a used car, the warranty may have expired on your vehicle. By leasing you will typically have a guarantee throughout the lease period.

If you are in a period when there are many changes in your life, private leasing may not be the best solution for you. It might cost you money to get out of a lease. An example could be that you soon got children and your driving needs would therefore change. Here, for many, it would be better to buy the car yourself.

How long do you need the car?

Another important element that you need to decide before throwing yourself into your car is how long you think to have your car. If you want to change a car frequently – for example every two or three years, in many cases it would be good to hire a car.

If you want to have the car for many years, it will also be cheaper for you in the long run. The biggest loss of value occurs in the first couple of years of the car’s life. If you want to have the same car for 5-7 years, leasing can not pay you and it will be better for you to buy the car.

Negotiation of the price

One last item worth considering before buying a car is negotiation of the price of the car. Often you will be able to negotiate the price on either the new or used car. It can be both on the car, but it may also be on the car loan. Car dealers can often offer particularly attractive loan offers to the car. This can be done because they act as advisors and there is no big bank in the back of them.

As you can read, there are many things to consider before buying or leasing a car. It’s about doing your work properly and getting bids from different dealers and, not least, banks if you need to borrow money.