Is Speed Draft Leasing Good or Bad?
You must have bought vehicles by taking out a lease, right? Or you must know people who have bought vehicles through leases. When talking about leases, how can we forget speed draft? Different people say different things. Some say speed draft is a good leasing method. However, some others say not to fall for speed draft leasing. So, who is telling the truth? Because you also have this question, MotorGuide thought we'd give you an answer today about whether the Speed Draft Leasing method is good or bad.
What is Speed Draft Leasing?
Speed draft is a completely different leasing method from the normal leasing method. However, it's still a loan amount like a normal one. This leasing method has both advantages and certain disadvantages. Accordingly, whether a speed draft lease is good or bad depends on these factors.
What is the disadvantage of the Speed Draft Leasing method?
Imagine you leased a vehicle using the speed draft method. Here, you choose a leasing company to take out the lease. That company charges you monthly interest on the loan installment it provides. In this case, you only have to pay that interest. However, not a single cent will be deducted from your loan amount. If you pay an additional amount to the leasing company besides the relevant monthly interest, then that amount will be deducted from the loan amount. If you don't pay that way and only pay the interest every month, you will end up paying only interest every month. Because your loan amount remains the same.
What is the advantage of the Speed Draft Leasing method?
If you take out a normal lease, it's a fixed one. Imagine you take out a normal lease. What happens if you go to the leasing company about a week later and say you want to pay off all the money and close the lease? Let's say you asked that. But you won't be able to do that. Because it's a fixed one. Once it's taken out, it cannot be changed. Even if you take out the lease today and try to pay it off tomorrow, the stipulated amount must be paid within the stipulated period.
However, with speed draft, something different happens. There, they only charge monthly interest. As we mentioned before, imagine you tried to do with speed draft what you would do with a normal lease. That is, imagine you took out a lease with the speed draft method and tried to pay off the lease in about a week. In that case, the leasing company only takes the monthly interest and the loan amount. This is the advantage of the speed draft leasing method.
However, considering these points, the speed draft leasing method is best suited only for those who frequently have cash on hand. Because then you can pay off the lease all at once and close it.
This financial facility can be obtained much faster and easier than getting a normal leasing facility. It's also very easy to understand.
Is it okay to lease a vehicle using the Speed Draft method?
When you go to lease a vehicle using this method, the first thing you need to look at is whether you can pay off the lease you're taking quickly. Only take out a speed draft if you can do that. If not, it will be a big loss for you. Because you will only be able to pay the monthly interest. Then you will have to keep paying interest without the loan amount reducing even by a cent.
If you are buying the vehicle for business purposes, or if you have cash on hand, then the speed draft leasing method is suitable for you. However, if you are buying the vehicle for home use, or if you feel it will be difficult to pay it off, then taking out a speed draft is not a wise thing to do.
This is the correct explanation of the speed draft leasing method. Before taking out a lease, think two or three times about whether this lease is suitable for you or not. Because if you take out this lease without thinking about anything or researching it, and then cannot pay it off, you will be the one in trouble. Therefore, it is okay to lease a vehicle using the speed draft method, but only take out the lease after careful thought, consideration, and research.
