Leasing a Car

Leasing a car is a long-term arrangement, something like renting a house rather than buying one. The lessee gets to use the car for two to four years while making payments, but the car still belongs to the lessor, who retains the right to set certain conditions. For example, a lessee cannot decide to simply let a dented bumper go unrepaired; the owner of the car wants it back in good condition. Lease agreements vary but usually involve relatively small monthly payments with little or no payment due upfront and some limitations as to the number of miles the lessee can drive. Lessees who exceed the mileage limitation may have to pay a per-mile fee. If the car is returned with excessive damage, or if the lessee wishes to return the car early, there are usually additional fees. At the end of the lease period, the lessee may have the option to buy the car, but most leases result in the individual leasing a different car instead.

Advantages of Leasing

There are several plus points to leasing a car that may or may not be attractive to drivers. Leasing is best for people who like driving new cars, who do not want to worry about maintenance issues, who are not interested in owning a car, or who cannot afford to own a car.

Brand New Car

Leasing a car is a good option for people who want to always have a new car. If a driver gets bored with vehicles easily, leasing may be a great option. At the end of a short lease period, two to four years, the driver can turn in the car and lease a brand new vehicle with all the latest bells and whistles.

No Long-Term Commitment

Leasing is advantageous for people who know they will not need or want the car for more than a few years. For example, someone who expects to move every few years for work might opt to lease a car rather than deal with the hassle of moving and re-registering the car in each new location. Leasing is also perfect for people who, for one reason or another, are not interested in owning a car long-term. At the end of the lease period, the car is simply returned; the lessee does not have to bother selling or trading in the car.

Few Maintenance and Repair Issues

Since the leased car is typically brand new, the chance of serious maintenance or repair issues coming up is fairly small. In most cases, the car remains under the manufacturer’s warranty for the entire period of the lease, a further financial advantage. Many lease agreements include "gap insurance" or "waived gap liability," meaning that if the car is stolen or totaled, the lessee is not responsible for any remaining payments that regular insurance does not cover.

Lower Monthly Cost

Lease payments are lower, sometimes substantially lower, than loan payments for the same vehicle, and there are often no upfront charges, such as the down payment required when purchasing. For some people, this is the bottom line. Leasing allows a person to drive a brand new car for less money. In exchange for lower payments, the lessee does not have ownership of the vehicle when the lease term is up, as they would if they had purchased the car and made the higher payments.

 

So, this explains well why you should lease a car rather than buying a new car! This suits the best especially for the working corporate people who intend to use a car for a short term range. Drive.MY have served more than 100 corporat clients for the short term and long term lease. We are well known for the best competitve rates that we provide to our trusted clients. 

Buzz us at [email protected] to ask more on quotation.