First of all we have to clarify that leasing is not the same as renting: for example at lease-end you can decide to return the vehicle, or purchase it. When you leas a vehicle you pay just a portion of the vehicle, you will pay just the part that you "use up" during the time you're driving it. Actually when you have to do a leas payments you will have to pay two things:
- a depreciation charge: you pay his for the part of the vehicle's value that is lost during your lease.
- a finance charge: this is an interest on the money that the lease company has tied up while you're driving the car. So you repay part of the money that he lease company used to buy the car.
Briefly we can say that instead of buying a new car maybe with a bank loan you lease it for 4 or more years and pay to the leasing company at the end. Leasing cars you have the possibility to change you car every 3-4 years and to drive more car than you can afford!
So.. which are the advantages of leasing?
- Lower Monthly Payments because you pay just a part of the car.. the part that you use
- More Car, More often, because you can change car every 3 years
- Fewer Maintenance headaches because the repais are always covered
- Lower tax Bite because you don't pay sales tax
- No used car hassles
- Gap coverage included
- Lower upfront cash outlay
On line you can get all the information, free guide and maybe receive advices from the experts in order to removes the confusion and fear of auto leasing. It is really simple to leasing a car... and it will offer you many advantages, you will see!!!!
Continue reading Leasing car: more cars more often!
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