Buy a car through leasing

Financing long-term access to an automobile or other equipment is generally achieved using a long-term financial loan or leasing agreement. Leasing agreements are of three general types: financial leases, operating leases, and lease-backs. Loans finance the ownership of the financed object, while leases finance access to the use of the financed object. Among leases, the financial lease almost always provides an option of purchase at the lease end, while both operating and lease-back arrangements are more about securing access or use of the leased asset.

Loan
The provider of the finance (lender) provides finance over a period of years to the owner of the asset. Generally, the loan is arranged just prior to the acquisition of the asset and the lender sends the finance directly to the seller of the asset. The owner bears full risk of its loss or damage. The owner depreciates the asset on its books, retains full control over the use of and changes to the asset. Generally, the loan is not secured by the asset. A loan might be acquired to cover all or a part of the total financing, and might vary from one to three or more years.

Operational leasing is generally advantageous for entrepreneurs who are unwilling or unable to invest in rapidly evolving technologies and fashion trends (computers, communications) with their own funds. They include 24-hour repair and maintenance, temporary replacement vehicles, guaranteed access to technological infrastructure, such as certified technicians, expensive diagnostic and repair equipment and other advantages that are otherwise not easily affordable to a small company. Additional costs, such as insurance, maintenance, etc. may need to be included in any analysis between loan and lease products to obtain comparative results.