Car lease allows you to use a car without buying the vehicle outright
. A leases let you to use the car in exchange for paying monthly fees. This set-up means that you don't own the car. Although this is similar to car rental, it has several benefits written below.
Flexible Lease Contracts
Car leases has flexible contracts. The most common lease terms used are from 24 to 60 months. A contract term of 12 months or one year is also available upon request. You can choose from these contracts depending on your capacity to pay.
In addition to this, the monthly payments are fixed for the New Car Pricing . You pay the same amount all throughout the lease term. There are no increases or deductions involved.
Fixed Interest Rates
The interest rates involved in the lease are fixed. The amount you pay for the interest stays the same since the monthly payments are also fixed.
Availability of Tax Deductions
The amount you pay for the taxes of the car you lease are reduced when you use the car for business. You can arrange also arrange for an advance lease payment in order lower down the taxes. This is the reason why car lease is suitable for companies, partnerships, and sole traders.
You Can Own the Car
Other benefits from car lease are the options such as buying the leased car or exchange it for another vehicle. By the time the lease contract is coming to an end, you can actually pay the car's remaining balance and totally acquire its ownership. The amount you need to pay off the vehicle is lower since you already paid for the 50% of its value during the lease period.
In case you decide not to buy the car, you can also choose another vehicle to lease. All you need to do is negotiate with the the dealer for a new lease contract. With this, you may stop paying for the old car and get a new one. You are then subjected to a new contract and a different car payment scheme.