subject: Car Lease Deals Offer Better Options [print this page] Car lease deals include a fixed monthly payment in return of the full use of the car for a fixed period of time that is mutually agreed by both parties and for a fixed mileage that you have decided as per the requirement of your business.
The lease fee is decided depending on the value of the car when it was hired, the mileage that is estimated during the contract period and the value of the car at the end of the contract. For additional monthly lease fees all other hassles related to owning a car such as maintenance, servicing or replacement vehicles are taken care of.
For corporate houses it is much better to Lease a car than to buy one because all the advantages of owning a car such as tax deduction of expenses are allowed and the hassles such as maintenance, servicing and arrangement of replacement vehicle during maintenance period is taken care of by the leasing company.
Other reasons that tilt the balance towards car lease are:
You can have the choice of the model and make of the car.
You can have the choice of the duration of the car lease.
The lease fees are usually lower than the monthly installment of a car loan.
Since the duration of the car lease is decided, one can just return the car and opt for a new car after every few years.
The reduced value of the car is no worry for the lessee.
At the end of the lease the lessee has the option of returning the car without further obligation.
Car lease deals stipulate the mileage that is allowed in a year since mileage is the defining factor for wear and tear of the cars. If the likely mileage is more the lease fee is calculated accordingly. If at the end of the lease term, the mileage as per the car lease deals has been crossed then an extra fee might have to be paid for the extra use of the cars.
There are two main types of car lease deals; Business contract lease and Personal contract lease. The benefits of both these types of car lease deals are similar and far outweigh buying a car. For a business to lease a car is much better than buying one as capital that would be used to buy a car is not tied up when the lease option is used and it can be used for business instead. In the balance sheet also, a car lease does not have to show on the balance sheet improving the liquidity of the business.
