Pros and cons of the three different types of vehicle ownership
• Take delivery of a vehicle and pay for it over an agreed period. • You become the owner once you’ve made the final payment. • You can opt for a balloon payment which reduces the monthly payments, but beware the final balloon payment needs to be settled if you are not trading in the car for this value.
• You can choose to take ownership of the vehicle or return it to the bank when the lease ends. • You can drive a brand new car every two to four years. • The repayments are tax deductible if the vehicle generates income. • You can opt for a balloon payment which reduces the monthly payments.
• The buyer gets uninterrupted use of the vehicle rather than ownership of it. • To reduce monthly payments the customer can negotiate a residual value.