Leasing a Vehicle: Listing Down the Merits
Vehicles generally follow a price trend that people belonging to the automobile industry know best. As new models hit the market, prices for older ones plunge downward giving the buyers possibility to afford the car they’ve been eyeing since the last year. However, by the time the new models arrive in the showroom, the prequels get beaten by a fair measure, in terms of features, designs, performance and all other USPs possible. Besides the subsequent depreciation of automobile valuation is another discouraging reason to save the pocket pinch and go for the easier alternative, which is leasing a vehicle. Especially as it comes to a vehicle for commercial use, buying can never beat leasing.
Leasing a vehicle using the seasonal deal is an option more profitable than availing the off and on car financing options. If anyone ever told you that leasing a van for your business is a pretty bad idea judging by the financial aspect, then the stats that 25% of the automobile purchasers are former leasers of the vehicles stands in diametric contradiction to the theory.
To understand the merit of leasing, you need to have a distinguishable idea of renting and leasing. Renting is easy and flexible, and meant for short time users. Supposing that you rent a vehicle for airport transfer, your accountability of the asset lasts till the closure of the term. Lessees on the other hand are entitled to make a payment of the depreciation estimated to take place during the period of use. Lease contracts typically extend from 2 to 3 years, during which the users are allowed to drive the vehicle to a preset mileage. Violation of the accepted mileage will subject the van leaser to an extra payment for every mile of extra driving, as determined by the provider. Surprisingly, the final figure is still shorter than the purchase expenses when all the mentioned costs are put together and weighed against the finance installment.
Leasing a vehicle is always a flexible option when compared to the opposing idea of applying for a car loan, even if it is a used vehicle you are considering. For businesses, the necessities keep changing and investing in purchase will only engage a substantial portion of your capital for a wrong cause. On the contrary, paying short monthly installments is manageable even by small companies with shorter funds and proportionate revenue.
Aside, leasing frees a user from other obligations like road tax, car insurance premiums, maintenance cost, repair bills, etc.