Used Car Leasing vs Buying Used Car with a loan

When it comes to acquiring a vehicle, you might find yourself torn between leasing and buying, especially when considering a pre-owned car. In this article, we will explore the pros and cons of both the options.

What is used car leasing

Used car leasing, also known as second-hand car leasing or lease of pre-owned vehicles, involves renting a vehicle for a set period. When you lease a used car, you are required to pay the rent amount and not the entire cost of the car. Leasing a car provides you with the flexibility to switch cars without any hassles. The main disadvantage of leasing a car is that you do not own it. Unlike buying, leasing does not contribute to ownership or equity buildup in the vehicle.

Used car leasing vs buying a used car on loan

Here's a comparative look at used car leasing versus buying a used car on loan:

Choosing between leasing a used car and buying one on loan depends on your financial situation, driving needs, and long-term plans. Leasing offers lower monthly payments and less maintenance responsibility, but buying provides ownership and flexibility without mileage restrictions.

Buying a used car with a loan

In today's world, owning a car has transitioned from being a luxury to a necessity. However, the hefty price tag attached to purchasing a brand-new vehicle can be daunting for many.

Fortunately, the thriving used car market in India offers a more affordable alternative. With a wide array of options available, buying a used car has become increasingly popular. Though it is cost-effective but still requires a huge sum of money, this is where used car loans come in handy. With the help of used car loans, you can spread the cost of your pre-owned vehicle into small manageable monthly instalments. When you buy a used car, you own it outright once the loan is paid off, giving you the freedom to customise, modify, or sell it at any time. Each loan payment contributes to building equity in the vehicle, providing a tangible asset that can be used as collateral or traded in for a newer model.

Bring home your pre-owned car with Bajaj Finserv Used Car Loan

Bajaj Finance, one of India’s most preferred non-banking finance companies, offers a high-value loans that comes with competitive used car loan interest rates and an easy application process.

Here are some of the benefits of choosing a used car loan offered by Bajaj Finance.

Substantial loan amount: With our used car loans, you can get funds up to Rs. 1.02 crore and bring home your dream car easily.

Quick disbursal facility: You can get the funds you need within 48 hours* of approval. Our quick disbursal facility ensures that you bring home your desired vehicle without any delay.

Simple eligibility criteria and minimal documents: Our simple used car loan eligibility criteria and minimal paperwork make the loan availing process hassle-free.

Flexible repayment tenure: You can repay your loan in manageable monthly instalments over a period of up to 84 months.

In the debate between leasing and buying a used car, both options have their merits.

Leasing comes with a lower rental cost, while buying provides ownership and equity buildup. Consider your budget, lifestyle, and preferences to determine which option aligns best with your needs. And remember, whether you choose to lease or buy, a used car loan can be a valuable tool in financing your second-hand car purchase.