HOW IT WORKS
In contrast to traditional bank loan, leasing is such type of car financing which suggests that you pay for using a vehicle instead of buying a whole new one. Fees will include amortization costs (price losses), any distance covered and any deterioration over norm, if it’s caused by your driving.
Just like with a traditional financing scheme, you’re going to need to pay a certain sum beforehand. The automobile will in fact be bought by a leasing company (us) before it’s starting to get loaned out. You can think of a leasing company as a financial structure, it’s pretty much the same. Basically most leasing companies are banks that do automobile credits as well as leasing.
When you buy a car with a bank loan, one part of your monthly payment is used to cover the ‘main body’ of the vehicle price, and the other part — to pay the commission fee. While leasing a car, your payment includes a price for using the car plus finance charge. You never have to overpay for the vehicle.
One of the biggest advantages of leasing is the possibility to just return the car and walk away without any debt at the end of leasing agreement, leaving all the hassle of selling the car to a company you worked with.
Let’s assume that you rent a car that costs 35000 dollars, and leasing company can sell it for 25000 at the end of the agreement. The 10000 dollars that were lost over the term of usage are covered by the monthly payment. Leasing company also turns a small income on percentage that you pay monthly.
Now that you know more about leasing, you can easily understand why it’s better than traditional ways to buy a car and we hope to work with you in the future. Contact us, if you are interested, and don’t forget to read other articles on our website! Let us know if there’s something missing that you wanted to know too, it’ll be highly appreciated!