Financial education is the most critical asset that any university scholar must possess. According to reports, for the academic year 2017-18, the average tuition fees for university programs in Canada shot up by 3.1 per cent. It is a significant hike, in the face of the fact that the average Canadian university tuition fee — not including the cost of stationery, books and other expenses — anyway comes to about CAD 6,500 every year. More expensive academic courses can incur a fee anywhere in the range from CAD 8,000- 22,000 annually.
For students who have taken loans to pay for such enormous tuition fee and other related expenses, it is essential that they know how to manage their financial resources efficiently, especially when it comes to controlling costs other than the fee.
For example, every student who is living far off the campus or having an additional part-time job would genuinely appreciate having his/her car. However, buying even a used car can strain one’s financial resources significantly, and it is not easy to manage a car loan along with an education loan. This strain can pose a severe problem because the fear of huge debts often prompts students to drop out of the programme.
In such cases where a student with limited financial resources may need a personal vehicle, he/she can explore the possibility of getting a car on lease. When you lease or rent a car, you have to pay a periodic or monthly fee for a fixed period, say about one to three years. Once the contract gets over, you can leave the car with the company or switch to another one.
Leasing has many benefits for university students, and some of those advantages are listed as follows:
- Cars on lease work better than used cars
When you lease a car, you will drive a vehicle which would be in its best condition, unlike used automobiles that are generally way past their prime years. Be it the technology, braking, lights or seat comfort; you will get a car in which these features will be working in their best condition. As a customer, you will have more extensive options in the choice of your vehicle.
- No worry about selling the car
As mentioned earlier, once you no longer need the vehicle, you can leave it with the dealer or ask one of the company agents to pick it up for you at a mutually convenient spot. You do not have to worry about finding a buyer for the used vehicle. Before you sign up for an auto loan, remember that unlike a leased car, a financed or purchased car depreciates the most in its first year of use on the road. You wouldn’t have to worry about depreciation when you lease your next car.
- Easier process
Even if a student were confident about managing an auto loan, it is possible that the student may not qualify for that. Car leasing has no such problems, and the payment plans are easy to manage as well.