Updated: 14.02.20 16:09
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If you want a car, you have to fight your way through a wild jungle of offers and models. What is the difference between leasing, subscription and financing??
- The road to a car can be quite rocky – or at least complicated.
- From leasing, to subscription, to financing, there are many models.
- What are the differences and which model is suitable for whom??
despite dieselgate& the german people still love their own cars co. Unbroken. Statistically, more people in this country own a car than ever before – to 1.000 inhabitants there are 567 cars. Even in urban areas, the number of drivers is steadily increasing despite alternative mobility options. However, it is not only the number of cars that is growing, but also the options for acquiring one. Finance, lease, subscribe? We explain the biggest differences.
Car financing: how does it work?
The financing next to buying a car in cash, leasing is probably the best-known way of acquiring a vehicle. This is a loan that is obtained from a bank and is used to pay the price of the vehicle at the dealership.
The idea is relatively simple and in the end involves nothing other than the cash purchase of the car with borrowed funds. However, it is necessary to obtain offers from a number of different banks and dealers in order to compare the interest rates of the individual institutions with each other. Once you have found the right offer, you pay the purchase price back to the lender in monthly installments. For this service, the lending institution pays out a percentage of the loan as remuneration.
the great advantage of financing in contrast to the other two forms of procurement is that one can be offered a the vehicle is actually owned in the end. One of the disadvantages is that the monthly installments are usually comparatively high and the search is often laborious, especially for new cars, as there are many dealerships to visit and offers to compare. Also you have to worry about things like taxes, insurance and co. Take care. The biggest disadvantage is currently the risk of depreciation. Because if you are suddenly not allowed to drive in the city with the new diesel, the resale price suddenly drops abruptly into the basement.
Basically, financing is particularly suitable for those who do not shy away from administrative work and want to purchase their vehicle as cheaply as possible and use it for a very long time.
Leasing: for whom is long-term car leasing suitable??
leasing is also paid for in monthly installments*. This form of financing, which is now also popular with private individuals, is ultimately a type of long-term rental, where the lessee pays for the use of the vehicle. The biggest difference between leasing and financing is the fact that a leasing you do not own the vehicle at the end of the contract, as it is simply left to you and returns to the lessor at the end of the contract. How long the vehicle can be used can be determined individually. Currently the average term of 30 months and has continued to decline in recent years. The number of kilometers to be driven under the contract is also determined when the contract is signed. With leasing, the monthly rates are usually lower than with financing, because leasing is often subsidized by manufacturers and banks. Another advantage of leasing is that you always get a new car and can exchange it for a new model at the end of the contract, just like with cell phone contracts. In addition, there are now more and more offers where you can book insurance or a maintenance package as well. This makes leasing a kind of modular model from which users can select the components they need and are willing to pay for them.
This option is therefore particularly worthwhile for those, who have their costs under control and want to drive a new car regularly.
Car on subscription: the netflix model for vehicles
The newest of the three types of purchase is clearly the car subscription. With this form of vehicle financing, the customer pays a The monthly rate is relatively high, but includes all costs such as taxes and insurance for the vehicle. The customer only has to add the fuel costs on top. However, this also has the disadvantage that, for example, you cannot use your own insurance for the vehicle, but are tied to that of the subscription provider. As with leasing, with a car subscription you specify at the start of the contract the number of kilometers you want to cover each month. The biggest difference compared to leasing, apart from the included services, is probably the the shorter terms of the car subscription, which are usually between one and six months, are more flexible. After that, customers can choose a new vehicle.
data of the US supplier fair.Com says, however, that the actual average period of use for a car subscription is around 18 months. "This is like full-service leasing for private customers", car expert ferdinand dudenhoffer of the center automotive research at the university of duisburg-essen sums up the car subscription. This makes the autosubscription option particularly suitable for people who are do not want to have any administrative work with the vehicle and are willing to pay a premium for them. It is also ideal for anyone who wants to drive as many different vehicles as possible at short intervals or who only wants to be mobile for a few months.
financing, leasing, subscription: which model is suitable for whom??
The market for individual mobility is therefore still in motion and offers a variety of options for procuring one’s own car. Who drive as cheaply as possible If you want to keep the same vehicle for many years, it’s best to choose the leasing option classic financing. Those who want cheap and a new car without risk if you want to drive a car and are prepared to commit to a fixed term*, you’re in the right place with a car subscription leasing best on. And those who are willing to pay for maximum flexibility to pay a few euros on top, can confidently become the subscription access.
Warning lights in the car and what they mean
suddenly it flashes and lights up in the cockpit! The symbols and indicator lights on the dashboard show whether the car is technically lacking something. However, it is important to know what the lights mean. Here are the most important control lights in the car: © ADAC
Engine oil pressure too low. Switch off engine. Check the oil level and top up if necessary – but it doesn’t always help. In most cases, the car has to be towed to a workshop. © ADAC
low oil, check oil level and refill – otherwise engine damage is imminent. © ADAC
seat belt sign: one or some of the passengers are not wearing a seat belt. The symbol also lights up when a heavy bag is on the seat. © ADAC it flashes and lights up: what the warning lamps – control lamps in the car mean. Problems with the power supply: generator defective or an electrical connection interrupted. Do not switch off the engine and drive to the nearest workshop. DO NOT drive on with electric power steering (steering power assistance can fail) or broken fan belt (engine can overheat). © ADAC it flashes and lights up: what the warning lamps – control lamps in the car mean. Problems with the brake. If this light is on even when the handbrake is released, there is a great danger. Too little brake fluid or the brake pads are down to the metal. stop immediately and call roadside assistance. © ADAC it flashes and lights up: what the warning lamps – indicator lights in the car mean. Engine is overheated. cooling water is no longer sufficient. Stop the car and let it cool down. Then take the car to the workshop. © ADAC it flashes and lights up: what the warning lamps – control lamps in the car mean. Tire pressure monitoring system reports low tire pressure. Possibly harmless, if the symbol lights up after changing the tire (missing calibration) – more in the owner’s manual. © ADAC it flashes and lights up: what the warning lamps – indicator lights in the car mean. Malfunction in the restraint system. Airbag/ belt tensioner failure possible in the event of an accident – go to the workshop immediately. symbol also lights up when passenger airbag is deactivated (wg. child seat). © ADAC it flashes and lights up: what the warning lamps – control lamps in the car mean. Brake pads are worn and should be replaced soon. Continuing to drive possible. © ADAC it flashes and lights up: what the warning lamps – control lamps in the car mean. ESP (electronic stability program) is active – often on wet and icy roads. Steer carefully, don’t brake hard and take your foot off the gas. © ADAC it flashes and lights up: what the warning lamps – control lamps in the car mean. Problems with the engine control. The emission of pollutants may be increased. symbol also lights up if the lambda sensor is defective or a marten has damaged a cable. Immediately drive to the nearest workshop. © ADAC it flashes and lights up: what the warning lamps – control lamps in the car mean. Rear fog light is switched on. only allowed in germany if visibility is less than 50 meters due to fog. © ADAC