How Does Leasing a Car Work and What are its Top 10 Benefits?

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Cars are now considered as the main transportation vehicle and are now a necessity. They are also one of the biggest investments that anyone can have. But what if you don’t have enough money to buy a brand new car for your family or personal use? Then the only option you can have is to lease a car. Leasing a car typically means that you are recompensing to make use of a car for a specific period of time. When you lease a vehicle from an automobile franchise, the franchise commonly trades the car to a leasing company or agency. The automobile franchiser is mostly compensated with a commission for providing the leasing agency a new customer. However, despite being a great alternative, many still do not know the answer to the question, how does leasing a car work. Maybe you are one of those people who want to know its benefits and uses. Once the vehicle is hired or leased to you, you will then start making monthly payments. Your monthly charges are then based on the variance between the residual value and the retail price of your leased car, which simply means that you don’t need to pay for the total price of the car. Also, when you lease a car there are several benefits that you will surely enjoy than purchasing a brand new one or a secondhand on the spot. To help you know the top benefits of leasing a car, here is a list for you.

10. Look great in driving a brand new car10. Look great in driving a brand new car

Well, it is an obvious benefit to every person who is driving a brand new car. It is like you’re driving the dream car of your life. This is also the reason why most of the people who can’t afford to buy their favorite car go to lease a brand new one. Leasing a brand new car is far better than purchasing a second hand one. Plus, you can also assure the car’s good quality and function.

9. Profit from the most advanced technology9. Profit from the most advanced technology

By deciding on leasing a brand new car that you can’t normally afford to purchase, you can also utilize the most advanced technology. This means that your car is a much safe vehicle and it likely to have less glitch compared to a second hand car. Through the advanced technology, brand new leased cars can save more money because they are more fuel efficient. If you decide to purchase a second hand car, why not go try to go for a leased brand new car?

8. Advantage for business8. Advantage for business

If you’re a business owner and you don’t have a car for your business, you have the option to go for a lease. There are several additional advantages you can gain in leasing a car first before opting to buy a new one, like being able to save for the vehicle you really need while earning. It also saves your time in searching for a brand new car and through leasing a car, you can also check on what car is suitable for your business.

7. You get a wide selection7. You get a wide selection

One of the top benefits of leasing a car is you have the freedom to choose any car you want at an affordable price. When you lease a brand new car, you will be able to select from a wide list. Some companies also provide an option list that you want for your new car, which means that you can select the interior, the color and also from a number of devices and upgrades that you want to install to your car for desired operation. So, it will be a great decision if you opt for lease a car first before purchasing a brand new or second hand car.

6. The same warranty service6. The same warranty service

When you lease a brand new car, you could also enjoy the same warranty service that you would have if you purchase a brand new car. That also means that all the major and minor car problems will be covered and you won’t need to worry about any big unexpected expenditures that you might experience from purchasing a second hand car. With the same warranty service, you can assure that your financial account is safe from huge expenses.

5. You get additional maintenance cover5 You get additional maintenance cover

In addition to the same warranty service, you can even opt to add a lesser charge for additional maintenance cover to your monthly payment. This will then cover a tire replacement and all routine servicing. By doing so, you can save money from spending expensive car services in the future and also your time from looking for a reliable car repair service provider.

4. No trading your own car4 No trading your own car

This is one of the advantages you can get to enjoy when you lease a new car. You don’t need to sell your own car just to get a brand new one because in car leasing, you can get what you need. You don’t hassle yourself in advertising your car and convince several customers just to sell your car. So, instead of tiring yourself in looking for a potential buyer, why not just keep your old car and lease a new one.

3. Prevents depreciation cost3 Prevents depreciation cost

Another great benefit of leasing a car is that you don’t have to suffer or worry on its higher depreciation costs. Purchasing a brand new car often makes you lose a significant amount of value in just the first few years alone. So why avail of a property that easily goes down in value? There are a lot options to choose and one these is by leasing a car.

2. No huge deposit needed2 No huge deposit needed

Even though leasing a car will require you to provide a down payment, it is still far cheaper than that for purchasing the same car on business and lesser than purchasing a car on the spot. Most of the initial deposit of a lease car is paid within 3 months or more depending on the model and brand of the car.

1. Lower and reasonable monthly paymentspayment due

One of greatest benefits of leasing a car is that the monthly charges are a lot cheaper and lower than the corresponding monthly charges of purchasing the correspondent new car on finance. This means that you can purchase or own an upmarket or newer car than you would typically be able to pay for when purchasing a second hand one.


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