Do You Really Need a Lease Car?

In this modern world, Automobiles have become very important to determine your status quo. Having a car has become essential in every house. Purchasing a house is always a better way than renting a house, but it is advisable to go for rent for the car than to own it. Renting or leasing a car has become a new normal rather than buying one. Renting everything under the sun has become quite common nowadays. Car leasing is a procedure where one can use a car for a predetermined period by paying rent. There are lots of things to be taken into consideration before you lease a car.

Leasing allows you to take the car without paying a hefty sum of money. Only monthly installments as long as you want to keep them. There is no down payment involved. There are two types of leasing you can see: one is financially leasing and the other one is an operating lease. The corporate uses the latter in which you have to return the car to the lessor or to purchase it for the market value. The former type transfers it to your name at the end of the tenure, but most people do not prefer this because they wanted to go with the alternative model or an upgraded version.

Leasing works cheaper for you, and you could get tax exemption benefits as well. If you are buying a car, pay an EMI, insurance, vehicle maintenance, and above all, that would be your down payment cost. Leasing works well if his car’s resale value is lower than the money you saved on the lease. Buying will work well if it is on full cash payment rather than a loan. But there are few conditions to be followed if you lease a car.

Terms and condition for leasing are:

  • Leasing for a fixed period
  • Purchasing them at the end of tenure is possible
  • Depending on the plan, the cost and maintenance charge would differ
  • It involves no insurance cost
  • Lease terms can be from two to five years

Benefits of Leasing a car

  • Benefit in maintenance
  • Pay only for usage
  • No down payment
  • Best car value
  • Hassle-free dealing
  • Tax benefits.

After the leasing period, the user should bear a substantial leasing fee, which is unavoidable

  • Possession fee
  • Delivery charge
  • Disposition fee
  • Mileage fee
  • Wear and tear charge

Look at these tips before you go to a showroom and sign up for your contract to lease a car. This will help you with the key points that you are looking for and have a good bargain that you are looking for. Finally, when you put the pen to your paper, keep these points in mind before making the best decision so that you can have the best and safe driving experience.