Most of us get confused about leasing and renting. But there is a lot of difference between them. Renting a car means, giving it for a short period of time, say about 2-3 hours, while leasing means giving the car for a longer period, it may be months or years.
When leasing the car you need not pay the actual price of the car, instead you only have to pay for the period of lease. Leasing has become very popular because many people cannot afford buying a car and leasing helps them to pay only for the use of the car.
Benefits of car leasing
Leasing is in practice in many developed countries like US and UK. Car leasing is a good choice for those who have passion for driving wide range of cars and cannot afford to buy them. Leasing adds more advantages than buying a car, like low monthly payments, tax deduction for those who lease a car for their business purpose under Consumer Leasing Act, etc.
Some companies offer insurance cover for leased cars, which is an added advantage when the car has some wear and tear or meets with an accident during the lease period. You will enjoy all the luxuries that a car owner enjoys during the lease period.
Leasing is chosen by many people because it has low monthly payments when compared to buying a new car. You can drive wide range of new cars, luxury cars and also used cars.
Things to keep in mind before leasing the car
You should be sure on certain things like can you afford leasing, can you pay monthly installments on time, will you be able to continue till the end of the lease agreement, etc.
Mileage of the car is an important thing to considered while leasing a car. In US, only 120000-150000 miles per year are allowed for car leasers. If you drive more miles than this limit, then you have to pay penalty at the end of lease.
As we discussed earlier, people who lease cars for business purpose have the advantage of tax deduction. They can enjoy driving new and luxurious cars available in the market.
Leasing can be a bad option for those who want to lease the car for more than 2 years or who have driven extra miles or for those who fail to maintain the car, because penalty should be paid.
Leasing has both pros and cons, but still it the choice of most people and has gained popularity in countries like US and UK.
When leasing the car you need not pay the actual price of the car, instead you only have to pay for the period of lease. Leasing has become very popular because many people cannot afford buying a car and leasing helps them to pay only for the use of the car.
Benefits of car leasing
Leasing is in practice in many developed countries like US and UK. Car leasing is a good choice for those who have passion for driving wide range of cars and cannot afford to buy them. Leasing adds more advantages than buying a car, like low monthly payments, tax deduction for those who lease a car for their business purpose under Consumer Leasing Act, etc.
Some companies offer insurance cover for leased cars, which is an added advantage when the car has some wear and tear or meets with an accident during the lease period. You will enjoy all the luxuries that a car owner enjoys during the lease period.
Leasing is chosen by many people because it has low monthly payments when compared to buying a new car. You can drive wide range of new cars, luxury cars and also used cars.
Things to keep in mind before leasing the car
You should be sure on certain things like can you afford leasing, can you pay monthly installments on time, will you be able to continue till the end of the lease agreement, etc.
Mileage of the car is an important thing to considered while leasing a car. In US, only 120000-150000 miles per year are allowed for car leasers. If you drive more miles than this limit, then you have to pay penalty at the end of lease.
As we discussed earlier, people who lease cars for business purpose have the advantage of tax deduction. They can enjoy driving new and luxurious cars available in the market.
Leasing can be a bad option for those who want to lease the car for more than 2 years or who have driven extra miles or for those who fail to maintain the car, because penalty should be paid.
Leasing has both pros and cons, but still it the choice of most people and has gained popularity in countries like US and UK.
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