If you want to own a car but don’t have enough budgets to afford one, getting a car lease may be a good decision for you. Car leasing refers to “renting” a car from a leasing company. Rather than making one large payment to purchase a car, leasing company gives you an option to make small monthly installment payments while you get the leased car to drive. Let’s discuss important facts about car leasing.
Car Lease Types
You can choose between an open-end lease and a closed-end lease. The first option lets you return the vehicle at the end of the term of the lease and simply walk away. Yet, you should comply with terms of the leasing company to evade paying the penalty charges.
An open-end car lease is the type of lease that is offered to businesses. It pays the difference between the pre-determined remaining value and the car’s market value which is decided at the end of lease. You can see some of the best car lease deals here at Zooomr.
Car Lease Advantages
Leasing a car takes a minimal upfront price. Most leasing firms only need a security deposit and the first-month lease payment. Quite the reverse, buying a car involves a huge amount since you need to pay the value price of the car in one go, including the down payment.
Also, monthly lease payments are also lower than the monthly car loan payments. Since the lease company is just “renting” you the car, you don’t have to pay the full price of the vehicle as you would if you buy the car.
Car Lease Disadvantages
Of course, there are some disadvantages of getting car lease. For example, you should be able to fulfill the terms of leasing company. A failure in complying with these rules could lead you to paying the penalties. A majority of leasing companies imposes a limit on the mileage you can drive annually. Going beyond can cause you to pay a cost per exceeding mile.