Pros and cons of the three dif­fer­ent types of ve­hi­cle own­er­ship

The Witness - Wheels - - MOTORING -

In­stal­ment sale:

• 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.

Lease:

• 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.

Rental:

• The buyer gets un­in­ter­rupted use of the ve­hi­cle rather than own­er­ship of it. • To re­duce monthly pay­ments the cus­tomer can ne­go­ti­ate a resid­ual value.

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