This slide will be I think a good one to clarify you about Lease and Loan. You will get details about both these two and with that you will also able to know which one is better for you, Lease or Loan. Both have their advantages and disadvantages. In case of Lease you will have fewer amounts to pay but may not have the full authorization, while in case of Loan you will have the full authorization but have to pay more.

1. Lease or Loan ??
Which one is better for you???

2. 

4. Lease ??

5. Lease is a long term agreement to
finance for a car only for a fixed
period of time..

6. Two types of leases are there..
Financial
lease
Novated
lease

7. Financial Lease :
 It is an agreement between the
finance company and the borrower
where the finance company will
receive the lease costs and will remain
responsible for the maintenance,
insurance and taxes.

8. Novated Lease :
 It is an agreement between you,
your employer and a finance
company where the lease rental
payment will be made by your
employer for the term of the
agreement.

9. Advantages of leasing:

10. 1:Preserve Your
Cash flow

11. No down payments are needed
Without paying any initial cost you
can get your car .

12. 2:Lower
Payments

13.  The payments are usually low as you
are paying only the vehicle’s
depreciation value.

14. 3:Reduce Tax

15.  In leasing the tax payments are generally
made on the basis of your down payment
amount which is much lower as
compared to the loans.

16. 4:Increase
Flexibility

17. When you lease a car, there are no
worries about selling the car.
 And if you want you can buy it by
paying the other remaining balance.

18. Dis-advantages of leasing:

19. 1:Lack of
ownership
 With lease you are not permitted to
do any modifications to the vehicle as
you are not the owner.

20. 2:Fringe benefit
tax
 FBT impose a vehicle mileage limit
and it will add extra charges if your
mileage exceeding the contract limit.

21. 3:Residual value
 According to your agreement you
have to pay the residual value at the
end of the lease period, no matter if
the car is worth less than the
agreement value.

22. 4:Long term
legal obligation
 Once you sign the agreement , you
are bound to make the payments
even if you stop using the vehicle.

23. Loan ??

24. A loan is to finance for a new vehicle
where the buyer has to pay the cost in
terms of monthly payments.
Here you need to pay the entire cost of
the car along with the interest rate.

25. Advantages of loan :

26. Ownership

27. You have full authorization for
modifications as you are the owner of that
vehicle.

28. Dis-advantages of loan :

29. Security:


30. High repayments


31. Total cost of
the vehicle
Interest rate
Taxes

32. Loan restrictions
A loan generally includes some sort of
restrictions which force the customer to
maintain the credit ratios and also it
will block the customer to borrow
future funds.

33.  When deciding on how to finance your
new car you must consider all these
points and accordingly choose the best
option for you.

34. Thank You

35. Website: http://www.harmonymotorworks.com/