When you need to purchase a car and lack of necessary funds for the purchase, you can refer to the service car leasing. Option to buy car leasing is widespread and is considered the best option when there is no enough money.
Leasing has a lot of common characteristics with lending. However, there are differences to be aware of when leasing.
The essence of leasing is that you must make payments every month and pay an interest rate, and only after the full amount will be paid, the car becomes the property of the lessee. So leasing is a lease for a long period with the possibility of foreclosure.
According to financial advisors, leasing has several advantages over credit. For example, the lease is considered a more reliable procedure. Transaction executed by three parties, ie in addition to the sell side and the buyer in the procedure involved the leasing company. Thus, the transaction is made by several treaties.
Another advantage of leasing is that which thus acquires the vehicle, the lessee avoid bank charges.
Making a car on credit, transactions are usually concluded for a period of around five years. When leasing, you can specify a longer period. The lessee may not pay income tax. When the loan, in some cases, such a possibility does not exist.
Leasing can be a financial and operational. Operational leasing involves paying interest every month. In this case, payment of the total sum value of the car is made only upon the expiration of the contract.
If the lessee fails to pay the amount under the contract, the subject of the lease shall remain the property of the lender.
Financial leasing has many similar features with the credit. The basis of financial leasing is the monthly payment stipulated amount and interest.
The amount payable by each month depends on several factors, including that of the lease term. In the property of the lessee’s vehicle in this case proceeds only after the repayment of the last payment op Lease.
In deciding to use the services of a leasing company or not when buying a car, it should be understood that during the term of the contract and monthly payments by car will remain the property of the leasing company that gives representatives of the right at any time to make sure the machine in good condition.
If any of the conditions prescribed in the contract are not respected by the lessee, the leasing company may withdraw the car. Thus, the future owner of the car must be inspected regularly, keep the car in good condition and comply with all conditions of operation, if necessary, repair.
As can be seen, leasing is a great solution for those who need a car, but cash is not enough to buy it. Getting leasing, the customer needs to be careful when studying the conditions of the transaction and signing contracts.