To buy or to lease?
Economically speaking, it is usually better to own your car than to lease it. However, there are other benefits to leasing a car which this article will explore. In fact, some locals prefer to lease rather than own as well.
Benefits to leasing a car
Leasing a car can be a more convenient option than buying one, especially if you are in Norway for just a short period of time. You do not have to deal with the stress of choosing a car, doing all paperwork and maintenance involved with the car, and then selling it when you have to leave Norway (some companies are notorious for giving their employees too short of a notice for moves which then leaves you in a bind).
Leasing requires little or no down-payment.
If you are new to Norway, getting a car loan to buy a car might be an issue (it was for me as I did not have a long enough credit history so my Norwegian husband had to be my loan guarantor).
Leasing a car ensures that you are always driving around in a well-maintained, new or fairly new vehicle with a valid grantee.
You know the exact service history and condition of the car.
In some cases, leasing a higher class car (Mercedes, BMW) may be cheaper than owning it.
With owning a car, you never know how much you will get back for it when you are ready to sell it. If you were pressed to sell your car in a short time, you might end up losing more than you expected. With leasing a car, you know exactly how much the car is worth at the end of your lease period.
More information on the benefits of leasing a car can be found on Google. Ultimately, leasing or owning a car is a personal decision that must be made based on what works for you and your family.
Besides the monthly lease amount, what else do you have to pay for?
You will have to pay for your own fuel use, insurance, annual road tax and general servicing of the vehicle (this might differ from company to company. Please check all terms and conditions).
There may or may not be a distance limit on your vehicle. If you exceed the annual distance allowed, you might be subject to economic penalties.
You also have to pay MVA on the lease vehicle.
How long is a lease period?
A lease period is usually 36 months, however there are many exceptions to this. I know people who have leased cars for a 1 year or 2.
Where can you go to lease a car?
I know for sure Bertel O’Steen leases cars. If you know of other companies which leases cars, please share them in the comments below.
