Car leasing is an arrangement where you get to use a car for a given period of time at a fee. Different companies lease their vehicles for a defined period of time. Others lease for hours, while others give their cars for days. Leasing gives you an opportunity to use a car without buying it. There are different types of car lease specials and some of them include:
This lease is also called walk away lease and it is to many people. It allows you to pay for the vehicle and return it after the agreed period elapses. Closed-end lease does hold you responsible for any physical damage or wear and tear to the vehicle. Depreciation of the vehicle is the responsibility of the leasing company. This is the best deal to take considering that a car’s value will always depreciate from time to time. With this lease, you are not responsible for the vehicle’s value at the end of the lease period or the vehicle’s market value when it is being returned.
These types of leases are almost similar to the closed-end leases only that you are held responsible for the car’s value if its residual value is less than the market value at the end of the leasing period. If the market value goes higher than the residual value, you will be expected to get a refund. This type of lease is appropriate for individuals who drive a lot and have no mileage restrictions. They are best suited to commercial organizations that do not have any restrictions on the mileage.
With this type of lease, you are required to make a single lump sum payment at the beginning of the lease period, unlike going for the typical lease where you make monthly payments. The concept allows you to save money by paying in advance because you are immune of any additional interest charges. Always carry out research before taking this type of lease to avoid being overcharged.
This is the most common type of lease among people all over the world. With the urgency to move vehicles from the lot, the manufacturers may offer a low interest rate or have a high residual value for it. With this lease you get to gain from the manufacturer’s policies, hence making it a good bargain. It is always important to involve financial consultants before you make a decision on the kind of lease to take.