Car leasing explained

Leasing is a long-term rental agreement offering the exclusive use of a car for a set period of time at a fixed monthly price. Car leasing helps you avoid any unexpected costs owning the vehicle by offering a fixed monthly payment for the term of the lease. The customer also doesn’t have to worry about depreciation or selling the car.

At the start of a contract, the customer should cover the first-month payment with bank fee, and receives the keys to the vehicle. The customer then makes monthly payments for the duration of the contract term. At the end of the contract, the customer simply hands the car back without any further obligations or may choose to purchase the vehicle.

Leasing the car for personal use is the biggest part of leasing financial industry. People often confuse leasing with rent: let’s try to avoid those misconceptions.

Rent is a time-limited use of a vehicle for a fixed sum. At the first sight you think that it’s the same thing that happens when you sign a leasing agreement. In both cases, the registered car owner gets money, while other people use his car. But the difference is that at the end of a leasing contract a car will either become a customer’s property or he may choose to just give it back, while rent means that you can’t keep the car under any conditions. Rent usually involves higher monthly payments, but is overall cheaper because there’s no big first payment, so people mostly use it if they need a car for a short period of time, like hours, days or a couple of months. When leasing, you take more responsibility for a car but it, of course, pays off, because you can purchase the car at the end of it! Moreover, leasing payments are always fixed, so no matter how long the term of agreement is, you’ll need to pay a fixed sum monthly and that’s all.

All of that makes leasing one of the most popular ways to purchase the car in the current market. Here you will find an article on the terms and conditions of leasing agreements that our company offers. If you have any additional questions, please feel free to contact us and we’ll try to help you out.

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