The Recent Surge in Automotive Leasing
A car makes traveling easier and much more convenient. When you have your own car, all that you have to do is put gas in it and you will be ready to go. What about those who don’t have cars of their own? What can they do? For such as these, there are car leasing services available for them. Also known as automotive leasing, this is a service where you can pay a fraction of the actual value of a car so as to use it for a given period of time. This period of time can range from 3 to 5 years. The amount that you pay for the car represents the projected amount of depreciation that the car will suffer over the period that you will use it. You can lease a new car or a used car. Most people prefer to lease new cars. This allows them to get more value for their money in terms of vehicle reliability than if they were leasing a brand new car. Read on to learn more about automotive leasing.
What exactly is automotive leasing?
The concept of leasing is not new in the world of business. It has been used in the real estate and construction equipment industries for decades. Automotive leasing followed these industries and has been around for roughly 30 years. Many people confuse car leasing and car renting. They are not the same.
Renting a car means that you pay a flat fee for the period of time when you will use the car. This time can range from a week to a year. You can pay for the car monthly or quarterly. After that, you return the car and the deal is done. In leasing, the amount that you pay has been calculated to be exactly the amount of depreciation of your car over the period of lease. Thus, the difference is the amounts involved and what they represent.
When you are going to lease a car, there are a few factors that you should know. Firstly, you need to understand how the process of leasing works. After this, you must know how to negotiate the best possible deal for yourself. In addition to that, you should have a grasp on how the cost of leasing is determined. This knowledge protects you from getting cheated by your car dealer.
The popularity of car leasing
Currently, 25% of all brand new cars, SUVs, vans and trucks on U.S. roads are leased. Also, luxury cars tend to be leased more often than regular cars. They are leased 70% to 75% more often than other cars. There are advertisements for car leasing in the newspapers as well as on television and radio. As a result, many people are picking leasing over other methods of car acquisition. Leasing a car has many advantages and benefits that you would otherwise not enjoy if you were getting your car using other means.
One of the main benefits of car leasing is that the monthly payments that are involved are much less when compared to a car loan. Leasing also allows you to drive expensive, luxurious cars that you otherwise couldn’t afford to drive. Int he current economy, the prices of new cars have shot up. This means that the average earner simply cannot afford to buy these cars outright. Also, the cost of living has risen too. Food, housing and other basic needs are more expensive now than ever. As a result, it is much harder to get the funds necessary to buy a car. Thankfully, automotive companies and manufacturers have come up with the concept of car leasing. This concept allows people to drive the cars that they dream of for cheaper and in a simply, straight-forward manner.
Car leasing helps you to drive that luxurious Range Rover or Mercedes that you always dreamed of. For a small fee, you can enjoy the amenities and status that come with driving such a car. The monthly payments are very low and the process is super easy. However, you need to prepare yourself adequately before you decide to lease a car. Make sure you consult your accountant, your bank and your lawyer before taking this step. They will guide you through the process and ensure that you get a fair deal. In addition to that, take the above advice as you walk into the car dealership.