The Basics of Private Car Leasing
Posted: Jul 06, 2017
Car leasing has gained immense popularity in the recent past. In fact, research states that there is an uptrend to the extent of 46 percent in car leasing in the past five years.Car Leasing is beneficial
Why not?When car leasing boasts of innumerable advantages, why would a buyer purchase a car instead of leasing?
Leasing a car allows the buyer to drive a new car when the depreciation is the lowest and then replace it with a new car of the latest model after a few years. What’s more, he need not make his bank accounts bleed with a hefty payment. He can instead pay a rental amount for the period of use. Moreover, as the lease period of the car often falls in the manufacturer’s warranty period, repairs and maintenance costs are low.Interesting isn’t it?
However, the attraction in the car leasing deal often fizzles out quickly; thanks to the tricky terms and mystifying numbers.The mystery behind car leasing often discourages car buyers to opt for private car leasing deals.
Understanding BasicsSo, here’s all you need to know about car leasing before signing your first private car leasing contract. A thorough understanding will solve the private car leasing mystery and enable you to get the best private car leasing deals.
- It is important to consider the lease amount you pay for leasing a car. This amount is usually the depreciation value of the car. The two factors that affect this amount are:
The residual value: Vehicles depreciate every year. Residual value refers to the value the car retains after use. The more the car is used, the lower the residual value. Cars with lower residual value will certainly attract a higher monthly amount. So, look for a car with higher residual value.
- The price of the car: A higher priced car attracts a higher monthly payment than a car with a lower selling price. So, choose a car with a lower selling price.
Incentives and Fees: Fees and incentives charged vary across different car leasing companies. For the best deal, it is important to compare the deals offered by different car leasing companies.
- Down Payment: Some car leasing companies demand a part of the lease amount as down payment, while others do not. Make a note of companies offering lease without the down payment. Although the monthly amount is higher, you save money in case the car meets with an accident soon after the lease agreement is made.
- Term of Lease: The advantages of car leasing often tempt you to go for a longer lease period like four to five years. Ideally, three years or less is better as the car often falls into the manufacturer’s warranty and depreciation is the lowest in the first few years. What’s more, you can enjoy the thrill of driving a new car.
- Mileage: The lease contract mentions a specific mileage. Anything over and above would be charged additionally. What’s more, this additional amount is often higher. So, assess the mileage carefully before the final call.
Now that the mystery of car leasing is solved, you can set out to find the best car leasing deal.
The author Brad Carlton has a vast knowledge based on car lease deal and has already written informative articles based on personal car lease,business car leasing related topics.