Car leasing is the process of
renting cars on a contract between the customer and the lesser for a
certain period of time. It obviously has its own benefits to buying a
car.
However, it is very common nowadays as people find leasing a
better alternative to owning although zero percent and low rate
financing are offered to buyers. Today, most of the luxury cars like
Porsche, Bugatti, and Ferrari etc. are still leased.
More about leasing
The customers can use the vehicle
according to the contractual period but cannot own it. The leasing
company will remain the legal owner of the car even though you are
using it. The lesser can lease the car to another customer as soon as
the period mentioned in the contract ends. The types of car leasing
include an operating lease, contract hire, finance lease and personal
contract hire agreement. One should read all the terms and conditions
declared in the agreement to experience the full advantages of
leasing.
The process of Car leasing
First, you should choose a vehicle
that you would like to rent. The duration or the period until which
you can use the vehicle is fixed along with the anticipated annual
mileage. The time period can be a maximum of 2-3 years. Depending on
the selected mileage and the time duration, the lesser declares a
certain amount on the car that is to be paid as monthly installments
to the company.
Towards the end of the contract, you
end up paying the monthly rentals as well as the monthly interest.
The car can be restored back to the car leasing company on the due
date. If the car has exceeded the mileage mentioned in the agreement,
then you have to pay an additional cost on each extra mile. The extra
costs may also be charged if the lessee fails to maintain the car
properly and this has resulted in much damage.
Benefits of Car leasing
The process of car leasing has some
benefits such as you can always drive a new car that has a warranty
and needs no routine maintenance. You can enjoy the benefits of a
larger, better equipped and more luxurious car. It is the best method
if you need a car for only some time, like 2 or 3 years. Before
leasing, you need to take into account the factors like initial
payment or down payment, the monthly payment and the likely
additional charges at the end of the lease.
Negotiating a car lease
The cost of car leasing can be
negotiable just like buying a car. The more you manage to reduce the
total amount, the better. A low final amount can lower your monthly
payments. The mileage limitations in a lease are usually 12,000 to
15,000 miles per year. However, you can very well purchase extra
miles in advance if you doubt that you may exceed it. If you cannot
maintain your vehicle, leasing may not be a good option as the
vehicles have to be returned in a proper condition. Make sure to read
the terms and conditions properly to avoid the hidden clauses.
Thus, car leasing can prove to be a
good option if you are sure about your financial security.
References
- Leasing eller køb af bil (leasing or buying a car)
- Investing in a new car
Няма коментари:
Публикуване на коментар