What do you mean by car lease? In a simplest definition, it is a method of buying or obtaining a new portion of car’s actual price, instead of buying the car in entirety. When you lease a new car, you would be paying a small amount on it till the number of months or years in the lease agreements.
Advantages of car leasing:
Leasing has been described by many as the easiest and most effective way of obtaining a new car.
- You don’t have to worry about disposing a new car; it is solely the duty of the leasing company.
- To get a better lease deal, it is your responsibility to know how leasing works
- It is up to you to do a proper homework, and negotiate as much as you can
- The capitalized cost is the selling price, while the residual value is seen as the worth of the car after the lease agreement. The low any of these, the lower the payments you would be making.
- Check this car allowance calculator to see if it is a good option for you.
Disadvantages of car leasing
Let us look at some of the demerits of car leasing:
- Car leasing involves making a huge financial decision especially if the car expires.
- At the end of the lease agreement, you must return the car; some companies set what would be the value of the car at the end of the lease
- Leasing a car is more expensive than buying the car; this is why experts suggest that if you really want to have the car at the end of the lease agreement, it is necessary to buy it from the onset.
- Car leasing can be done only if you don’t wish to keep the car for a long period of time
The car leasing company would determine the percentage you would be paying. It is a general requirement that you are not expected to drive more than 15,000 miles per a year. The vehicle is also expected to be in a good condition, failure to do so, you will face some end-of-lease penalties.
If you engage in car leasing, it is necessary to make a proper research in the internet, or ask your friends and family about the best car leasing company they have used or known overtime. This would help you to make a proper decision. You will never regret engaging in leasing.
We hope you have learnt something from this article.