• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Factors associated with buying or leasing a car.

Extracts from this document...


Christina West 615-885-4841 Dr. Annette McCreedy Essay #2 10/13/03 When buying or leasing a car several considerations should be taken into effect. Buying a car is when payments are taken monthly if the car can't be purchased in one lump sum. A car lease is a short-term purchase and when the lease is up the car must be returned. Although leasing a car might be fun and ideal for people who have an abundance of money, buying a car is ultimately the best path. I feel that buying a car is a much better decision than leasing a car, because after the car is paid off it belongs to the buyer, still holds value, can be modified, and gives the owner a sense of pride. Also, when leasing a car the buyer is forced into a constant program of spending more money. ...read more.


Also, only the portion of the car being used is what is paid for. In other words, if the car is wanted for two years the payments will be only for two years worth, without having to resell the car or trade it in (Gin 1). If short-term use is one goal, a lease may make sense. However, if the use of a car will always be in need, but it doesn't have to be a new car, a lease is an expensive option. At the end of the lease term, the car will have to be replaced with another car, a different lease, and further series of payments. When buying, the car belongs to the buyer after the monthly payments end and does not have to be returned to the dealer. Leasing a car also involves mileage limits. If an agreement of how many miles the car is limited to is passed the leaser is charged extra for the miles exceeded over the limit. ...read more.


Kacya Cotton, a counselor with the Canadian Automotive Association, says that it's best to either let the car go or sell it to someone else (qtd. in Citrome). Also when leasing, the financial company, not the lessee pays for theft insurance (although the lessee is expected to pay for liability insurance). There are many factors to think about when leasing or buying a car. Simply, the reasons why leasing is not the smarter option are; the lessee never owns the car, monthly payments go more to the company that leased out the car then to the actual use of the car, the car cannot be modified, and going over the mileage limit can be very expensive. The main reasons why buying a car is better than leasing a car is the sense of ownership, ability to modify the car, and the saving of money. . . ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Accounting & Finance section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Accounting & Finance essays

  1. Identifying and describing the main financial service needs for a student starting at university

    CAPPED RATE The interest rate you pay is guaranteed not to rise above a set rate during the capped rate period. With this loan you are in a win-win situation. If the Woolwich standard variable rate drops below this capped rate, your payments also fall.

  2. What does Finance involve.

    is not a lot for a week. Now had I have discussed each option and started which one I will be going to fianc� my business from. I will move on and work out my fixed cost and variable costs.

  1. Free essay

    The car race - creative writing.

    I said angrily. "Well, I don't care what you think and I'll prove it to you and James and all the rest of you who don't believe me that I can win this competition!" I woke up early the next morning, so that I will have time for preparation on

  2. Financial Services

    3 months * Council Tax �600.00 a year * Repayment of student Loan �270.83 a month * Transport �50.00 a month * Entertainment �120.00a month * Emergencies �100.00a month * Personal use �40.00 a month Martin is also considering to buy a new car, and as this is a very

  1. Business and finance

    Select current account. The select current account can save you money, get all the banking services you expect. The services that are on offer are: * �50 interest free overdraft. * High interest on your savings by 0.5% * Discounts on standards loans with a select loan.

  2. Project DR: Manufacturing Division

    The Pocket Pal and Quik Calc on the other hand require complex parts and personnel, which decreases their profit margin and increases the sales needed to break even. Lastly, the contribution margin is the highest for Accurer, then Pocket Pal and Quik Calc.

  1. Management Accounting Report.

    That is the reason I recommend the company to try and sell more than 3,000 products. On the graph Number one I will show the breakeven point and the margin of safety. The calculations below show prove the answer of the graph.

  2. Accounting for Colin's Cars.

    Sum of the years = 55 First year the asset will depreciate 10/55 x 100% = 18.18% Second year the asset will depreciate 9/55 x 100% = 16.36% Third year the asset will depreciate 8/55 x 100% = 14.54% Fourth year the asset will depreciate 7/55 x 100% = 12.73%

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work