Car leasing is one of the things coming out from a new generation’s bucket. The car leading market touched the heights to recognition in 2014 when it marked a penetration rate of 26.5% to set an all-time high benchmark.
What is Car Leasing?
Car leasing or vehicle leasing can be quoted as a systematic procedure in which an individual utilizes a rented vehicle under some terms and conditions for a specific predefined period, usually a long-term period. Under this setup, the user is not the owner of the car. Once the agreements and the lease period are deemed invalid, the user must return the vehicle to the sole authority, i.e., the asset owner. The leasing system can be a relief for an individual who thinks purchasing a vehicle is luxurious or expensive; they must have their hands on a rented vehicle.
Benefits of Car Leasing
If an individual wants to control cash flow from his pocket and wants to escape those high monthly installments, vehicle renting is the ultimate door to enjoy a car’s luxuries within a tight budget. Here are some of the positive points of vehicle leasing –
- Avails a variety of choices to the users – When an individual leases a vehicle, he gets a bag full of options to choose from. He can opt for his dream vehicle for reasonable rates. The customers must not think about the quality or reliability, as it’s the leasing company’s responsibility to present the best service.
- Requires a less or negligible investment – There are tons of vehicle leasing facilities with no down payments or with no money down. Although it may include some processing and other charges, it appears negligible, and these fees are usually rolled into monthly installments.
- Low and convenient monthly payments: In comparison with purchasing a brand new vehicle, leasing a car can push back one’s expenses up to 20% to 30%. It helps individuals operate their dream vehicle at low payments.
- Presents GAP insurance services – The leasing company provides the customers with an efficient GAP service, which protects them when the vehicle is stolen or totaled during the lease period.
- No hassle to sell the old cars: If an individual purchases a vehicle at the end of his life or is bored with the old vehicle or desires to upgrade to new technology, he needs to undergo an extreme hassle to sell the car. But, if one leases a car, there’s no worry of selling. Once the leasing period is over, the vehicle is returned to the authority, and one is free to shift to another car ethically.
There is a bag full of the fruitfulness of leasing a car over buying a new vehicle. The leasing trend is getting popular in the new era of technology, as it is a hassle-free method to enjoy the luxuries of a car without an impact on your pockets. It requires low maintenance cost, and the leasing company presents all other services to see the customers with a stress-free experience.