Why you should go for car leasing

Posted by Gauri Satpute on September 25th, 2019

The purpose of car leasing companies in the market is to make consumers more independent, or at least more independent than others. Generally speaking, their target is to find the best offer for you. They do this by having the best buying power to purchase vehicles, and to work in collaboration with finance houses to develop a package together and come up with appealing monthly rentals with the aim of attracting customers. Their work is similar to that of a mortgage broker, but with vehicles.

Unlike a traditional car loan, car leasing is a type of financing in wherein you have to pay for the use of a vehicle instead of its purchase. The use of a vehicle includes its depreciation cost, any excessive mileage, and any excessive wear and tear that is caused during your lease. As with traditional financing, you will have to shell out a finance charge (interest rate) on the purchase price of the vehicle. Not known to many, the leasing company actually purchases the vehicle before they turn around and lease it to you. To a dealer, there is no difference between lease and regular sale. On the other hand, when it comes to a car loan, a considerable portion of your monthly payment goes in paying off the principal, so the amount you owe to the bank with the passing of time keeps lessening constantly. This reduces your finance charge.

A major advantage of Corporate Car Lease is that you simply return the car to the leasing company and walk away to the end of your term, while they will have to deal with the hassle of selling the vehicle. Also, if you are covered by a manufacturer warranty during your lease term, you need not fret over large and unforeseen repair bills. Another advantage of car leasing is that, you can enjoy the feeling of a new car with the latest technologies, comfort, and safety features. Leasing a vehicle from the corporate car leasing companies in India is also pretty easy if you know what you are looking for.