Unlike buying a new car in cash or on loan, buying a new car on lease is the most popular way to save the money and grab a new car in lesser prize. Lease payment consists of basically two parts
Financial charge and depreciation charge.
The finance charge is the interest on cost of the car that you have leased. The depreciation part of the monthly payment paid by the customer is the lost of the value of vehicle during the lease term.
Leasing is almost similar to buying; however, this is also true that buyer won't own any thing at the end of the lease agreement. It's a contractual ownership of a new car.
New car dealers always open this option for their customers. Due to lack of money, some time buyers go for lease cars but their actual intention is to buy the vehicle at the end of the lease or before the lease comes to an end. To buy a car on lease is always more expensive than the actual buying of cars.
The financial charges depend on the brand of car. It is always less for the lesser brands and higher for the renowned version of the cars. The resale value of the car depends on the brand. The depreciation is also varying from car to car.
To lease a car is an easiest way to grab a best new car in the market at an appropriate monthly payment. While buying a vehicle, it needs a huge down payment; however, in leasing of car you need to pay some amount of security deposit and service charges.
If some one wants to lease a car this is to be noted that new car dealer will thoroughly check the credit history until and unless they are not satisfied with the economical condition of the buyer, they won’t allow letting the car on lease.
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