One of the most popular options for owning a safe, modern and affordable vehicle is a car loan and lease scheme. There are many options available at the moment and it can be tricky to determine what has the best rate, lowest interest and what you can afford in conjunction with your lifestyle.
To put it simply
Choosing to loan or to lease a car comes down to your priorities. With a car lease, the monthly payment is usually lower than loans, [however] you’re not building up any equity in the vehicle with those payments 1. Car leasing could be the option if you’re needing to manage your cash flow as the payments are usually low weekly expenses. With a car loan, you have more tangible ownership on the vehicle and you work at repaying off the loan, to eventually own the car outright.
Does Credit History Matter?
Depending on the institution, if you have a poor credit score, you can still be accepted for a loan or lease. Alpha Finance specialises in helping Australians acquire a vehicle even if their credit history is not squeaky clean.
Before you sign any dotted lines, it’s best to sit down and write out your expenses in relation to your cash flow. That way, you can easily determine whether you can afford the loan repayment or leasing a vehicle may be a better option. Alpha Finance has a team of specialists to help you determine if what the best option is for you.