What is the difference between car leasing and bank credit?

When it comes to purchasing a used vehicle, one of the most important decisions is the choice of financing method. Two popular options are car leasing and bank credit. Understanding the differences between them is key to making the right choice for your needs and budget.

Car leasing: flexibility and lower upfront costs

Car leasing is a financing solution that allows you to use a newer vehicle for a fixed period. With an operating lease, you only pay for the use of the vehicle and at the end of the contract you have the option to return it or purchase it. If you want to finance lease a vehicle, you need to know that you will own it at the end of the contract. The main advantage of leasing a car is flexibility, lower upfront costs and the ability to change vehicles more frequently.

Here we provide you with a free car leasing calculator.

Benefits of car leasing:

• Lower monthly payments compared to a car loan by offering lower interest rates.
• Suitable for companies that do not want to block the full amount needed to purchase a vehicle.
• Option to exchange the vehicle at the end of the contract. (operational leasing).
• Lower maintenance costs for newer cars
• Deductibility of expenses (even in full – in the case of operational leasing).

Bank credit: own the vehicle from day one

A car loan gives you ownership of the car from day one. The monthly rates may be higher than leasing, but at the end of the repayment period, the car is yours completely, with no further obligations.

Car loan advantages

• You own the vehicle immediately after purchase.
• You can modify and customize the car to your liking.
• A suitable solution for those who want to keep their vehicle for the long term.

Not decided on a van lease?

When thinking about financing your used vehicle, you need to consider your personal needs. Leasing is a great option for flexibility and lower upfront costs, while a bank loan is ideal for those who want to become owners from day one.

In a previous article, we also discussed the need to pay VAT when buying a used car.