subject: A Few Of The Reasons Why Car Leasing May Be The Best Action To Take [print this page] A Few Of The Reasons Why Car Leasing May Be The Best Action To Take
Car leasing is a vehicle payment option which involves financial backing for getting a vehicle which you would like to use or is otherwise out of your price range. There are standard lease payments that one pays for the lease duration. At the end of this duration, one is free to buy the vehicle from the company offer ask for a new model.
Car leasing being a simple payment option has very flexible terms in its lease. Though the length of the lease may vary, one is able at the end of every lease period to trade in the car for another model that they desire. Moreover, car leases are secured by the car by itself. This protects the owner from suffering any damaging losses that might be incurred should he or she default in payment.
Thirdly, it is common knowledge that lease payments tend to be lower than that of other option such as loan repayment. Lastly, the car itself acts as its own security in the lease. This protects the lease holder from losing anything other than the car in case of payment defaults.
Leasing also has business benefits too. These include tax deductions for business companies that choose this payment method. Financial companies have also been noted to have repurchased such business vehicles in an effort to lease them out to the businesses whenever they are needed.
Though car lease is intended to be an easy and quick payment option there are repercussions especially to payment defaulters. Perhaps the greatest disadvantage is that since the car was originally bought by the finance company one stands to lose any capital invested in the car itself. By capital we refer to the payments.
Secondly, financial companies may impose high termination fees to discourage termination of the lease before its intended date. Lastly, as all the service charges are paid by the financial company some users tend to excessively wear out the vehicles. However, these users are in fact at a disadvantage as they stand to be charged for any excessive wear on the vehicles.
The car lease payment option is a novel idea and it is a great option for businesses and individual alike. In the end, both the parties involved are satisfied. Though this method has a few drawbacks, this are but a few compared to the limitless benefits one gets from the option.
