If you have no idea what leasing means but you want to buy a car you are in the right place. Plus, being a fan of Citroen means you will need to know a little bit about this brand, about its history and where it all started. This article is here to explain you what’s the difference between leasing contracts and bank credits and why is Citroen a trustful brand you can take into account when deciding to buy a new car. Keep reading if you are interested in this topic.
In the case of leasing contracts, the leasing company is considered the owner from the beginning to the end of the contract. In the other case, for a bank credit, the customer is the one that is considered the owner of the car fully. Changing the ownership of a lease is done just in the moment the payment is complete, plus the residual value. Another difference occurs at the time of early repayment. Under a leasing contract, the customer is not able to repay all the creating earlier because the law prohibits a leasing term shorter than one whole year. Yet, this limitation does not apply to car loans where customers usually have the opportunity to repay the loan at any given time during the contract. Check your options before doing anything else.
The longer the contract period will be, the lower the monthly rate is and the customer can pay for it easier. Although it seems much more advantageous at first sight, choosing a long-term contract is not recommended. The total cost paid at the end of the contract increases when the period of time is bigger. Another reason why a shorter period is recommended is handling the maintenance costs easier. The buyer will spend much less on repairs in the first years after the purchase. However, later the costs are going to increase.
Citroen was founded in 1914 by Andre Citroen. Originally, this French company produced war ammunition which is quite odd, people say. After a while, in 1920 Andre’s company started to be known as Citroen – a car producer. They are famous for their first model – Traction Avant. Everyone knows how this car looks like and wonder how Citroen could do such a thing with so little money. Citroen is the world’s first non-US car manufacturer, which says a lot about this brand. The brand was taken over in 1934 by the mass producer Michelin and since then, the two French manufacturers worked together and shared technologies.
The Traction Avant was a world premiere for many, many reasons but there is one that surely needs to be pointed out: the front-wheel drive with self-supporting chassis. Citroen managed to reach the Book of Records for using the Eiffel Tower as a billboard (the largest advertising billboard in the world). Peugeot owns 90% of Citroën shares since May of 1976. Since then, the two companies have created the PSA Peugeot Citroen holding.