These days, car buyers are able to purchase cars via a number of different financing options, the most common being car leasing and purchasing a car via vehicle finance. Though each option offers its own unique benefits to the buyer, choosing between vehicle finance and car leasing depends greatly on the buyers’ driving requirements and personal preferences. Choosing whether to lease or finance a car is an important decision; almost as important as choosing which vehicle model to purchase. Therefore, CMH Carshop has compiled a list of the benefits for both vehicle finance and leasing to assist you in making your decision.

The benefits of leasing a car

Leasing a car is different to purchasing a car in the sense that the “buyer” (or lessee) never intends to own the vehicle. The lessee agrees to a contract that allows him or her to take temporary possession of the car for the period of the lease. Once the contract has ended, the lessee returns the vehicle to the dealer and can then choose another vehicle for lease.

The following are some benefits of leasing a car:

Low to no deposit – Dealership car leases vary greatly and one of the major advantages of leasing a car is that you’re not required to pay a substantial down payment.

Low monthly instalments – Instalments on leasing a car are generally lower than vehicle finance instalments. This is primarily because when leasing you’re agreeing to use a portion of the car’s value, as opposed to purchasing the entire car.

A new car every two years – Most leasing contracts last for approximately two years, or an average of kilometres that is similar to two years of driving. Drivers who choose to lease a car are able to drive a new model car often - which some drivers may enjoy.

Why you should opt for vehicle finance to purchase a car

When choosing to purchase a car via vehicle finance, buyers are granted an agreed sum of money by a dealer, bank or financial lending institution as a loan. The buyer agrees to repay the vehicle finance loan over a lengthened period of time and via smaller monthly payments to the financier. The vehicle will be licensed in the name of the buyer from the moment it is sold; however, failure to repay the loan will result in the financier claiming possession of the vehicle.

Purchases made with vehicle finance offer a number of benefits such as:

No mileage restrictions – While leasing restricts you to a set mileage for the duration of your lease, purchasing a car offers no limitations on the number of kilometres you’re allowed to cover during your period of ownership. This is especially beneficial if you drive long distances every day.

Ownership pride – Purchasing a car with vehicle finance also awards you with a solid asset that you can call your own; an asset that instils pride knowing that this is what you’ve worked to pay for every day.

Customisations – When you decide to purchase a car, you can further customise your car by adding quality parts and accessories to enhance the styling and performance of your vehicle, making it stand out from the crowd – a benefit that car leasing doesn’t offer.

Choose vehicle finance when you buy a new or used car at CMH Carshop

CMH Carshop is a leading motor retailer in South Africa with one of the widest selections of new and used vehicles for sale. Browse our cars for sale and opt for our comprehensive vehicle finance option – so that you can drive your dream car and own it for as long as you wish.