One of the most important reasons for the increase in the popularity of car leasing among the automobile fanatics is that it they do not have to pay for the total cost of the vehicle. They just have to dig deep into pockets to incur the expenses on the monthly installations the company conducting its business activities in this field charges for using the car for a certain period. Moreover, it offer them the opportunity of driving the one of latest models that come out in the market at afford cost without have to own it.
Omari Betts, a sales and leasing consultant for ChevyChaseAcura in Maryland, America, hold the view that most people opt for car leasing because it offer them a cheaper option to own one. These individuals have a chance to drive the automobile of their choice for as long as they need to and then return it to the company leasing the vehicle at the end of the period. Moreover, leasing a car from a reliable corporate enterprise offer these car users the following advantages:
- They incur lower repair costs on the vehicle because the warranty clause in their lease agreement with the company covers this aspect;
- They are liable to pay sales tax at lower rate in comparison to owning car;
- The monthly installments they pay to the car leasing company is cheaper than the down payment they have to pay for purchasing a new automobile; and
- They get the opportunity to lease a new car model of their choice on the expiry of their existing lease period with the company and applying for a new one.
However, he says that people need to consider a few facts before taking a decision on leasing a car they want to drive:
- Read the lease contract
People who intend to lease a car need to read the clauses of the lease contract they into with the company thoroughly. In case of any doubts, they should not hesitate to ask the representatives of the corporate enterprise for clarifications. Moreover, they need to ensure that they are getting a vehicle of their choice and the lease package caters to their needs.
- Affect their credit scores
Automobile users need to be aware that leasing a car affects their credit score in the same manner as taking a loan to buy a new vehicle. The company representatives will carry out an inquiry on the creditworthiness of their potential clients before offering them a deal.
- Additional insurance costs
People who lease a car from a reliable company normally pay monthly installments, which are cheaper in comparison to other modes of financing to buy a new vehicle. However, they lose this monthly cash flow advantage, as they have to shell out more money to pay for the extra insurance costs.
- Opportunity to negotiate
Companies that lease cars to the public normally have business relations with automobile manufacturers. This gives potential car users the chance to negotiate for a lower capitalized cost on their lease payments especially when they have a good credit rating.
Omari Betts advises people who intend to lease a car to consider the above factors before signing any agreement for car leases!