Car leasing is a method of financing a car that makes it easier for a person to get the keys to a newer version of a car without having to pay out a massive down payment or get caught up in a large car repayment loan. Car leasing is essentially a long term car hire agreement. The deals are often set up for a minimum of 12 months with most car leasing deals lasting for 24 months or 36 months.
The deal works like a car hire deal in that the car is hired from the owner and the person leasing the car pays a monthly fee. At the end of the agreement the person that leases the car returns the vehicle and the agreement ends. This means that the person does not invest in the vehicle and never owns the vehicle but nevertheless there are many benefits to leasing a vehicle instead of purchasing a vehicle.
The main benefits are the amount that the person pays every month stays static and can be carefully monitored and that the person leasing the car does not have to worry about the depreciation in value of a vehicle that they lease - they also do not have to worry about the hassle of selling a vehicle on.
Car leasing enables people to afford a car that they might not be able to afford if they were to purchase. A vehicle on a monthly lease scheme often costs less than the repayments for a car loan and although the person that leases the vehicle does not own the car at the end of the agreement it can nevertheless make the monthly outgoings much cheaper. This can be extremely beneficial to the person that leases the vehicle as they can keep a very close eye on their monthly outgoings.
This means that someone that needs to keep a very close eye on their outgoings is able to. Many leasing deals come with insurance included and it is also possible to get a deal which includes breakdown cover. This means that you can pay out a single monthly fee that covers you in every eventuality. This means that you can run a car without having to worry about the unexpected costs that are often associated with running a car. If it breaks down then the vehicle can be fixed at no extra cost. This can bring great peace of mind.
Another major benefit of car leasing is that it enables a person that is leasing a vehicle to regularly update their vehicle quickly and easily. With a car leasing deal when the agreement ends all the person has to do is return the vehicle and the keys and the person that has leased the car can simply walk away.
It means that they do not have to worry about the depreciation in value of the car that they have purchased and they also do not have to worry about the hassle involved in selling a vehicle on. This means that they can simply return a vehicle and pick up another vehicle in no time at all.
With car leasing there is a much smaller down payment for the vehicle. Typically this is the value of two or three months leasing paid up front. This can be considerably cheaper than purchasing and although the person leasing the car does not own the vehicle at the end of the deal he or she does have full use of the vehicle during the time that they lease it.
