Leasing. A very used word and an often used financial option, especially when we think about buying a car. But what exactly does it mean, what are the advantages compared to a loan, when and how do we resort to leasing, what are the optimal conditions? This is where it comes in FIT – Finance on the Meaning of Everyonethe financial education program launched by Banca Transilvania, which has simple answers to all money-related questions.
In fact, Banca Transilvania, through the FIT program, encourages Romanians to ask as many questions as possible, even about familiar things, which they should know better and understand in detail, before resorting to certain financial services.
What we need to know about leasing, but also about choosing the right car, the decisions behind such a purchase, in the latest episode of the FIT program.
An important decision
The traffic, the lack of parking spaces, the pressure of driving, the chaos on the street. Well, despite all the challenges, the personal car is the most used and preferred mode of transportation. It is also one of the most expensive purchases.
Buying a car is an important decision that comes after careful selection and strategic planning of your personal finances. Such a decision cannot be easily changed after purchase and any change has significant costs.
Such a purchase must be thought out in advance, depending on several important factors, the program shows FIT – Finance on the Meaning of Everyonelaunched by Banca Transilvania.
Cars, decisions, financial strategies and leasing are also discussed in the newest episode of the show “De tolli banii”, part of the FIT program. Ciriperu Fund and Silviu Istrate (Faiăr)the hosts of the show, together with their guests, the creators of content in the automotive segment, Catalina Vlad (Hype Fox) & Costin Giurgeatell about leasing, cars, bikes & inspired choices.
How you choose
First of all, what should you look for when buying a car? The question is divided into two other questions, Costin Giurgea points out: what do you use the car for and how much are you willing to spend on it?
“If I only want to use it around town and it’s just me in it, I’ll buy a smaller, nimble, easy-to-park car. If I want to go to the mountains with my family, I’ll have to choose something else. However, very rarely you still find bad cars these days. But some are more suitable and others less suitable, depending on the needs of each person,” he says Costin Giurgea.
Buying a car should go through a process of awareness of the pros and cons and a serious analysis of the pros and cons. Most of the time, however, people choose the car for social prestige, image, following opinions on the Internet.
“The car is a status indicator in Romania. As in the entire south-eastern European area, the Balkans. And this can be seen in the way the market is divided – new and second-hand cars. It often happens that Romanians prefer to buy a premium car but which has 200,000 km brought from Europe, which will cost them more to maintain, versus a new, more affordable car from Romania”, he says Costin Giurgea.
On the other hand, a new car loses up to 30% of its value in the first year of purchase and continues to depreciate by 10% each year thereafter.
Another important thing to take into account is that whatever car you choose to buy, it generates many costs even after the purchase: maintenance, insurance, fuel, parking.
Forms of financing
Catalina (Hype Fox) faced with such decisions in this very period. For her, the car means freedom of movement, control over time and independence. So he wants to buy a car through leasing.
Costin Giurgea also believes that leasing is a better option than paying cash when it comes to buying a car: there is no point in blocking a very large amount of money, for no reason, given that leasing financing offers decent interest rates.
“When you don’t have the money needed to buy a car or you don’t want to block it, you can use leasing. There are several options: financial leasing, operational leasing, credit for personal needs and car credit. With car or personal credit, the owner of the car is the buyer. In leasing, the owner of the car is the leasing company,” says Costin Giurgea.
Operating leasing includes everything, but the cost is higher, he explains Catalina Vlad. The rate you pay includes the depreciation of the car.
Whatever form of financing you choose, the decision must start from the basic needs: the type of car chosen according to the lifestyle, budget, savings and financial plans. This is why the program was launched FIT – Finance on the Meaning of Everyone: for as many informed choices as possible.
Source: www.iqads.ro
