Credit or leasing: What to choose when buying a car

Buying a car is a significant financial decision, especially if you plan to use it for personal or business purposes. Two of the most popular financing options are a car loan and leasing. But which is the better choice? In this article, we'll break down the key differences between credit and leasing, their advantages and disadvantages, and help you decide which one to choose based on your needs. With GetCar.ru you will be able to find the best deals for buying a car.

What is a car loan

A car loan is a loan from a bank or financial institution to buy a car. You pay off the cost of the car in instalments, including interest, over a set period of time (usually 1 to 7 years). When the car is paid in full, you own it.

For example, you can take out a loan to buy a BMW M8 Competition (2020) or LiXiang L9 (2023) by choosing the right conditions on GetCar.ru.

What is leasing

Leasing is a form of long-term rental where you pay for the use of the car, but it remains the property of the leasing company. At the end of the contract, you can buy the car, return it or choose a new one. Leasing is particularly popular among entrepreneurs and companies because it allows you to optimise your taxation.

Key differences between credit and leasing

To understand which is better, a loan or a lease, let's look at their main differences:

• Property. With a loan, you become the owner of the car after you have paid it off in full. With leasing, the car remains the property of the leasing company until you buy it back.
• Down payment. A loan usually requires a down payment (10-30% of the value), while leasing may be available without one.
• Monthly payments. Lease payments are often lower than loan payments because you only pay for the depreciation of the car.
• Flexibility. Leasing allows you to easily change cars at the end of the contract, whereas a loan involves long-term ownership.

Advantages and disadvantages of a car loan

Advantages

• Full possession. Once the loan is paid off, the car becomes yours.
• Flexibility in use. You can modify the machine, sell it or use it without restrictions.
• Long-term savings. Unlike leasing, you don't pay for the use of the car once the payments are over.

Disadvantages

• High initial costs The down payment and interest add to the total cost.
• Financial burden. Monthly payments may be higher than with a lease.
• Risk of overpayment. Long-term loans with high interest rates can significantly increase the cost of a car.

Advantages and disadvantages of leasing

Advantages

• Low monthly payments. Leasing is often cheaper in the short term.
• Flexibility. You can change cars every 2 to 3 years.
• Services Included. Leasing contracts often include maintenance, insurance and taxes.

Disadvantages

• Lack of possession. You do not become the owner of the car unless you buy it back.
• Restrictions. Lease agreements may include mileage limits and vehicle modification restrictions.
• Long-term costs. If you are constantly renewing your lease, it can be more expensive than buying.

How to choose between credit and leasing

The choice between a loan and a lease depends on your finances and goals.

• If you want to own a car. Choose a loan, especially if you plan to use the car for a long time, such as the Mitsubishi L200 (2024) for business.
• If you value flexibility. Leasing would suit those who want to upgrade their car regularly, such as switching from the Audi A6 Avant (2019) to the Xiaomi SU7 (2023).
• If the budget is tight. Leasing may be preferable due to low monthly payments and no down payment.
• If you're an entrepreneur. Leasing allows you to optimise taxes, which makes it popular among businessmen.

GetCar.ru offers a "Turnkey Car Selection" service, which includes advice on choosing financing. Experts will help you compare credit and leasing offers to find the best solution.

Legal and technical due diligence

Whether you choose credit or leasing, it's important to make sure your car is legally clean and in good technical condition. GetCar.ru provides services to check the car's history, legal cleanliness and full diagnostics, which is especially important for used models such as the Audi A6 Avant (2019).

Conclusion

Choosing between credit and leasing depends on your priorities: whether you want to own a car or prefer flexibility and low payments. With GetCar.co.uk you can compare offers, choose the right model such as the LiXiang L7 I Restyling 2025 (2025) and get professional support every step of the way. Whatever your choice, the right financing will help you get the car that fits your needs and budget.