As more and more teenagers are learning how to drive and passing the rigorous tests at a higher frequency rate, the question for parents is, how could they drive around? Car insurance costs are going up, and the industry itself has been booming ever since the economic recession and recovery started. More people don’t want to be tied down with an automobile indefinitely, so they’re choosing to now own the cars they drive outright. After it has emerged that more young people are willing to possess modern cars, while paying monthly fees, new and innovative financial options have been made clear, as great alternatives in helping to possess modern cars. However, modern cars are expensive and need to be properly looked after both by the company that offers them and the driver who has signed an agreement. Despite the higher costs, young drivers want the freedom of being behind the wheel, and they’re willing to pay for it.

Photo credit – Car leasing made simple


Methods of leasing


Leasing a new car from an independent entity gives young drivers a chance to basically call the car theirs for a set period of time. Of course, those who offer a new car will be the most popular and have many customers knocking on their door. However, there are two kinds of leasing deals that allow many different types of cars to fit under these umbrellas. The personal contract hire allows you to drive the car for a set period of time with no opt-in. This means after the agreed contract is over, you’re not legally obliged to buy the car, which makes this contract much more flexible with no strings attached. However, a personal contract purchase is seen as a loan taken out, for the duration of the contract. It’s a prolonged period of purchase, i.e., giving you time to make a payment accumulating to the sum total of the selling price, divided into years or months.

Image credit – State Farm


The freedom of loans


Taking out a loan for a car is perhaps one of the more popular techniques young drivers use to get behind the wheel of modern cars. Companies will take a look at your credit score, and forge a comprehensive plan for the driver to make monthly payments in conjunction, with what the vehicle is worth and set premiums of said company. Companies like, go through the many options you have when taking out a car loan, such as: comparing monthly payment schemes, not buying the car without finalizing the loan details, as well as finding the best and lenient lender to match your financial situation. Before you do take out a loan, know that you’re liable to the agreement, even if you don’t use the vehicle as it is still in your possession. A company will have one less product in their inventory for a set period of time; therefore it's tough to get out of an agreement once you’ve made it, so take the time to research.


Millennials are earning more than their parents did, relative to the global economy. However basic items are more affected by inflation, and so, you professionals are opting for more financial independence. Before you sign on the dotted line of a modern car contract, explore the various financial options open to you, and don’t get in over your head.


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