Should You Buy Or Lease A Volvo?

2008-10-07 10:15:27

( Automobiles )



The decision to buy or to lease your dream car, such as Volvo, depends largely on your financial capability. If you decide to purchase a car, it would be most likely through financing. If, however, you do not have the financial capacity to buy, then you would be contented to rent a BMW, or to lease a Volvo.

Car Ownership

You can take out a car loan from your local bank or through the dealership. One of the advantages of car financing is that you are the owner of the Volvo, despite not having paid the full loan amount yet. The lender would not mind about ownership of the car, for as long as you made a promise to pay your monthly amortization. It is only when you stop paying for your monthly repayment when the lender has the right to take the ownership of the Volvo from you. This is one of the main differences when you lease a Volvo, because the ownership in leasing remains with the car owner which can be the dealership or a leasing firm.

Types of Leases

There are two general types of car leases: an open-end lease and close-end lease. In an open-end lease, you are given a choice whether you would wish to be the owner of the car upon the expiration of the period when you lease a Volvo. The transfer of title can be made automatically, which is rare. Or, it can only be done after you pay an agreed amount with the leasing company.

In a closed-end lease, you will have to return the vehicle when the term to lease a Volvo expires. Title of the car will not pass between you and the leasing company. You should watch out for the provisions of the closed-end lease contract, because they can be complex.


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