Getting yourself a new car? Learn more about Premium New Car Leasing and Finance services

This is a tough decision since it concerns finances, obligations and car ownership duties. There are differences between the two and you should weigh which option works best for...

The convenience of having your own car is one of the reasons why people are getting one for themselves. With having a car, you’ll be able to travel anywhere and anytime you want. And this also saves you time since there’s no waiting in for a bus or carpool.

So, if you’re seriously thinking of getting a new car, you could be torn between deciding whether to buy or to lease the vehicle. This is a tough decision since it concerns finances, obligations and car ownership duties. There are differences between the two and you should weigh which option works best for your current situation.

People who are interested in having their own vehicle are eager to know what premium car leasing and finance services means and which one is better. So, let’s understand them better.

What is premium new car leasing?

When we say leasing, it’s basically borrowing the vehicle for a certain period of time (usually three years or less). You then make monthly payments in exchange for having the car. You usually have to make an initial payment before you get the car out of the dealership which will cover most of the taxes and other fees involved. Then you make the monthly payment over the lease period. And then you turn it in when the leasing period is over.

Remember that car leasing is different from car loan, car financing and buying a car. You just “rent” the car and then after a certain period, you can renew your lease, extend it or purchase the vehicle at its current value or you trade it in for a newer model.

Some qualifications to qualify for car leasing are your credit score, income and employment history.

If you’re decided on leasing a new car, take note of these three different types of car leases and choose the best available option for you.

  1. Novated lease – best suited for salaried employees. It’s a three-way agreement between the employee, the employer and the financier. This is an easy set-up where the dealer releases the new car, then the employer deducts the lease monthly payment on the employee’s taxable income.
  2. Finance lease – most common for new cars used in businesses. The vehicle is purchased by the financier and leased to the borrower, usually organizations or businesses. This involves paying a fixed monthly amount and the residual value of the car at the end of the lease. The lessee takes ownership of the car at the end of the lease period or renews the lease for another term.
  3. Operating lease – this is somewhat similar to finance lease except the lessee doesn’t have to pay the residual value of the car at the end of the lease. They just need to return the car to the financier.

Talk to one of our professional brokers in DDDC Finance to have the necessary information in getting your car leasing.

What are new car finance services?

New car financing is when you loan or borrow a certain amount of money for the purpose of buying a new car. If you don’t have enough money yet to buy a car but you can do monthly repayments, you can consider getting a car loan to fund your new car.

How does this work? In getting car financing, you pay a monthly total including interest to financial institutions that lend you money. There will be a term period or the duration of when you need to pay back the borrowed money which is normally from three to five years. This is different from car leasing as you are paying the monthly payment to OWN the car you want, not just to borrow and use it.

Here are some elements you need to understand if you decide to take car finance services.

  1. Interest rate – this is the first thing you need to look at when getting new car finance. You should use this information and compare the rates offered by different lenders before deciding on one. Know also how to calculate your interest rate regularly.
  2. Loan period – a longer-term period means you will be paying the borrowed money for longer, however, your monthly payment will be smaller.
  3. Car loan repayments – the most common time of repayment is every month but lenders also offer weekly or fortnightly options if this will better work for you.
  4. Other fees and charges – take note of other fees that can affect the amount of your car loan. This could include upfront fee, ongoing fee, break fee, late fee payment, etc.
  5. Balloon payment – this refers to a one-off lump sum amount agreed with your lenders that you need to settle at the end of your term period.
  6. Lender – you need to compare various lenders and choose which offers the best option for you. Research to make sure that it’s a trusted enterprise.

So, the crucial question now is…which one is better?

There is really no right answer to this question. Choosing the best option for you will depend on many factors including your finances and lifestyle. Both new car leasing and new car financing have their advantages and drawbacks.

New car leasing is flexible. You can choose your term depending on your budget. Monthly payments are also considerably lower than car financing which then allows you to get a more luxurious vehicle. And you can choose to get a different car when your lease has expired.

On the other hand, getting new car financing means you will get to own your car after the term period. Your insurance premiums are also lower compared to if you lease a car. You can also choose to sell or trade in your car whenever you want and just pay the remaining amount of the borrowed money.

It is always best to weigh your options and consider necessary factors when deciding to either get a new car lease or new car finance.

However, regardless of your decision, it is still always best to consult first an expert that can give you insights and advice on premium car leasing and finance services.

Let DDDC Finance guide you in carefully assessing your finances and lifestyles to know what best suits you. 


[1] Easi Fleet. (2021, July 29). Leasing a Car in 2021: This Is When Leasing a Car Is Smarter Than Buying Outright.

[2] Kurt, D. (2021, October 12). Is Leasing a Car Better Than Buying?. Investopedia.

[3] Fleeting, P. (2020, October 22). The complete guide to vehicle finance.Mozo.

[4] How does car finance work?. (n.d.)

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