How to Finance Your Car to Make Real Savings?

The car is a vehicle much appreciated for its practicality. It allows you to move quickly while being sheltered from bad weather and many dangers. This is the reason why more and more people are buying them.

However, the acquisition of a car requires the mobilization of significant financial resources. Fortunately, there are financing methods that are much more economical than others. For more information, find out how to finance your car to make real savings!

Choose the rental, while having the option to purchase with the LOA

When you decide to rent a car, there are two main alternatives available to you. On the one hand, you have the long-term rental (LLD). This is a rental with an obligation to return. On the other hand, there is rental with option to purchase (LOA) or leasing. It consists of a rental with a promise to sell. Also called leasing, leasing with an option to buy is to be distinguished from simple long-term leasing.

To use leasing for your car is to have a kind of consumer credit. This is the perfect solution to finance a car if you don’t want to keep it for a long time. You will thus be the tenant of the said car for a period ranging from 24 to 72 months. After this period, you can decide to permanently acquire the car or return it to the owner.

What are the prerequisites for buying a car in LOA?

Document sorting case, folder

To buy a rental car with an option to buy, it is necessary to meet certain conditions beforehand. The first constraint to respect consists in carrying out a contract in due form. The public authorities require that the said contract contain certain elements such as:

  • Identity of the parties
  • The date and duration of the offer
  • The price or value of the car at the time of rental
  • The designation of the car
  • The repayment terms
  • The total cost of the rental, etc.

After signing the LOA contract, you have a withdrawal period of 7 days. You should also be able to pay the rental fee and the vehicle registration document, although the registration document is in the name of the car owner or rental company. Likewise, the costs of insurance, maintenance and those of any repairs must be borne by the renter of the car.

Is it interesting to lease a car?

Hand thumbs up for advantages and disadvantages

Leasing a car is interesting in many ways. This allows you first to benefit from attractive monthly payments. These have the particularity of taking into account the depreciation of the car. Thanks to these monthly payments, you will also be able to spend less money and thus save a lot of money. With leasing, you will also have the freedom to change cars at the end of the lease without having to worry about selling the old vehicle. You can therefore change your car regularly. Likewise, opting for leasing allows you to have a manufacturer’s guarantee throughout the contract.

In the case of a used LOA, you will avoid the loss of the value of the car after the first year. Also, know that leasing saves you any contribution and any security deposit, which reduces the overall cost of the rental.

What are the differences between Rental with Purchase Option and other financing?


In addition to leasing with an option to buy, there are several other ways to finance the purchase of a car. Among these, there are for example long-term rental, car loan and personal loan. Unlike the LOA, long-term rental does not offer any possibility of purchase. The tenant therefore has the obligation to return the car at the end of the rental.

The auto loan is a loan dedicated to the exclusive financing of the car. It offers more advantages in terms of safety, but can only be used for the purchase of a car. This is why you will be asked to provide certain supporting documents. Also, the reimbursement of the car loan will only be effective from the moment you take possession of the car.

Finally, the personal loan is a classic consumer credit that you can use to finance your car. However, it does not offer as much freedom and possibilities as renting with an option to buy.

The LOA therefore remains an alternative to favor if you want to finance a car while making real savings.

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