Car Leasing – Facts You Should Know
If you want to own a car but running short of money for the down payment, then can lease can be an appropriate option for you. In simpler words, car leasing can be defined as renting a vehicle from a leasing company where you have the option to pay small monthly payments to drive the car for a fixed period. You don't need to make a large one payment to own the car. There are some crucial facts which one should know about car leasing.
Options for car leasing Mississauga
There are two options – open-end lease and closed-end lease. The first option is especially offered for businesses. In this deal, the lessee has to pay the difference between the pre-determined residual value and the market value of the car. Particularly, it is determined at the end of the deal.
In the closed end lease, you have to return the car at the end of the lease term and clear the payment. However, you should comply with the terms of the use of the leasing company in order to stay away from paying the penalty charges.
For instance, you have to keep a close tab on the number of mileage. You can be subjected to pay the fees if you exceed the maximum number of mileage. Furthermore, the vehicle is evaluated upon return and if the wear and tear exceeds the acceptable level defined in the lease term, you will be asked to pay the charges.
You may also be offered to buy the car at the residual value. But in case, you should note that the buyout price should be stipulated in the lease contract you signed.
The advantages
First of all, you are saved from paying more as you have to do for down payment. The minimum upfront cost is the biggest advantage. You need to pay only the security deposit and the first month lease payment. However, purchasing a car asks you to pay a big amount as the down payment and then the monthly installments.
The lease payments are much lower than the down payment and monthly car loan payment for the car. In addition, you have the option for choosing another car of your choice once the previous lease term ends.
If you are thinking for car leasing Mississauga, then it is suggested to go through the company terms carefully in order to avoid paying any unnecessary charges. Furthermore, it is also good to have all the necessary information regarding the interest rate and any other charges.
Options for car leasing Mississauga
There are two options – open-end lease and closed-end lease. The first option is especially offered for businesses. In this deal, the lessee has to pay the difference between the pre-determined residual value and the market value of the car. Particularly, it is determined at the end of the deal.
In the closed end lease, you have to return the car at the end of the lease term and clear the payment. However, you should comply with the terms of the use of the leasing company in order to stay away from paying the penalty charges.
For instance, you have to keep a close tab on the number of mileage. You can be subjected to pay the fees if you exceed the maximum number of mileage. Furthermore, the vehicle is evaluated upon return and if the wear and tear exceeds the acceptable level defined in the lease term, you will be asked to pay the charges.
You may also be offered to buy the car at the residual value. But in case, you should note that the buyout price should be stipulated in the lease contract you signed.
The advantages
First of all, you are saved from paying more as you have to do for down payment. The minimum upfront cost is the biggest advantage. You need to pay only the security deposit and the first month lease payment. However, purchasing a car asks you to pay a big amount as the down payment and then the monthly installments.
The lease payments are much lower than the down payment and monthly car loan payment for the car. In addition, you have the option for choosing another car of your choice once the previous lease term ends.
If you are thinking for car leasing Mississauga, then it is suggested to go through the company terms carefully in order to avoid paying any unnecessary charges. Furthermore, it is also good to have all the necessary information regarding the interest rate and any other charges.
