subject: Three Misconceptions About Car Leasing [print this page] The concept of car leasing comes into picture only when individuals plan to purchase a car of their own. Whether to buy it or to take it on lease is a decision which is very tough to make. In the case of car leasing, the right to use the vehicle is transferred to the individuals, but the true ownership of the car remains with the owner. This is best suited for individuals who wish to travel in highly expensive as well as luxurious cars. In case of actually purchasing a car, the ownership gets transferred right at the time of purchase of the vehicle. It looks simple and yet there are numerous misconceptions.
Leasing is merely a dealer scam
There is no such thing as a dealer scam when it comes to car leasing. This is mainly because this concept is a perfectly legitimate as well as valid one. Despite the fact that the dealers take undue advantage in the case of leasing, it is not right to call it invalid. The dealers try to cheat the customers solely because they get the feeling that the customers are unaware of the vehicle specifications and also the prices. It is only when the customers are not aware of the exact value that there are chances for them to get cheated. This leaves the customers with only one option, which is, to acquire complete knowledge of the car they are intending to take on lease.
Leasing means extra money
The car leasing agreement specifies the number of miles and the rates associated with the distance covered. So, if the user limits the miles driven within the specified limit, there is no question of any sorts of extra payments. In case if the limit exceeds, it is only then the users are asked to pay extra. Furthermore, vehicles must be returned back in the same condition in which they were given. This is important to ensure that no extra charge can be levied from the users. As and when the time progresses, the value of depreciation of the vehicle will get reduced. This is considered as an additional advantage.
The fact that you never get to own the car you leased is not completely true in the case of car leasing. At the end of the lease period, there are options with the help of which the users can actually go in for purchasing the same car they leased out. By doing this, the customers are at an advantage as they get to enjoy discounts on the purchase. Due to this reason, majority of the individuals are going in for this option. The reason why they are getting cars at discounted rates is because depreciation value gets automatically deducted in the case of such cars.
