Car lease plans are growing more popular since they prove to be quite favorable for any man’s budget. Even at this critical time, driving a brand new car won’t be a hindrance if you happen to find yourself a good car lease plan. In this post, we will look at some reasons why a car lease plan is a considerable option for your next car purchase.

A car lease plan is basically renting a car over a specific period. You’re required to pay for an initial payment as a deposit and then you will pay an agreed amount per month till the lease term ends.

You don’t own the car at any point and at the end of the lease you simply hand it back to the leasing company (although, often there is a purchase option). Most lease plans last for two or three years, although you can arrange a car lease for 12 months or even less.

No big cash payments required

The biggest upside to car leasing is that it doesn’t require a significant cash outlay as opposed to purchasing your car through a loan. The upfront payment is often equivalent to two months of the monthly rental.

Businesses benefit from car leasing, particularly, since they can treat the monthly payments as a part of the operational costs rather than a capital expenditure.  Businesses can also reclaim the VAT associated with the leasing costs, while the VAT on new car purchases cannot be reclaimed.

The car will always be under warranty

Most car manufacturers offer a three year warranty and most lease terms runs up to that time which makes your car under warranty until the end of the term; as long as the lease is for three years, of course (which most are, actually).

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Car leasing is occasionally more of a personal and lifestyle choice rather than a financial one.  If you like driving around in a new car every two to three years then leasing is definitely a good option for you. Since you don’t own the car, you won’t have to worry about trying to sell it in order to buy a new one. All you have to do is turn the car back in to the leasing company and then choose your car.

Offers buying flexibility 

Car leasing allows you to defer the buying decision and still get the chance to use the car. Think of your car lease plan as a test drive, if the car is indeed good then you can purchase it after 36 months or simply turn in the keys and just walk away if it isn’t.

An operating lease enables a lessee to use a car without taking the risks associated with ownership. The ownership of the vehicle is retained by the finance provider and the lessee is provided with full use of the vehicle in return for monthly payments matched to the agreed term and mileage. At the end of the car lease term, the lessee’s obligation ends right after he returns the vehicle in good condition. In short, this is simply a rental agreement.

• Operating lease terms usually have a 24 – 48 month range
• The fixed car lease rentals are on a single monthly invoice which allows easy budgeting
• Your working capital is maintained
• Operating lease repayments are fixed for the term
• You control vehicle maintenance and servicing
• Car lease rentals will be fully tax deductible if it is used to generate taxable income
• No resale value risk as the financier will own the vehicle at the end of the term of the operating lease.

An operating lease is best suited for vehicles largely used for business. Meaning that the car is used for business 50% or more of the time. It’s also a great option if you would need plenty of mileage per year and would like no residual risk at the end of the car lease.

A flexi car lease basically is a lease agreement that provides the lessee the benefits of a fully maintained operating lease without the commitment of a long-term contract. Since in business, requirements and change can differ for each entity, a flexible short-term car lease allows business to operate on a more cost-effective vehicle.

In a flexi car lease, a lessee simply lease the vehicle month to month. A lessee is presented a wide variety of vehicles to choose from and all vehicles are packaged together with a maintenance car insurance.

If you need the vehicle at a very short period of time, flexi car lease can be a great option. At least you are saved from the 1-5 year car lease commitment. There are also several benefits of flexi car leasing which are itemized below.

• The terms range from 1 to 12 months
• A tax deduction is available if used for business
• Flexi lease repayments are fixed for the term
• There is no residual risk. All you have to do is turn in the vehicle at any given time.
• Unlimited kilometer options
• Servicing and routine maintenance
• Automatic vehicle replacement when due for renewal

Many consumers get anxious when the day to finally return the car to the dealer comes; knowing that the condition of the leased car is inspected for extra charges. Usually, the charges are assessed based on the excess wear and tear or the excess in the allowable mileage as stated in the contract.

As the car leasing market becomes more competitive, banks are in the look out on how to make money from the returned vehicles which is why it’s important that the lessee keeps the car at the condition above what’s considered an “average wear and tear” to avoid the dreaded penalties.

Here are a few tips that aims to lessen the financial anxiety when saying farewell to your leased car. 

• Have the vehicle washed and detailed.
• Make sure you regularly service the vehicle.
• Keep all maintenance records.
• Have the vehicle serviced just before you turn it in.
• Fix things such as windshield chips, which are usually covered under the insurance and may cost you nothing to repair.
• If there are any needed repairs that you can handle, do it yourself.
• Stay within your mileage limit.
• If the mileage fees are pretty steep, consider selling the car yourself instead of paying the penalties
• Dents should be removed before returning the vehicle.

When you decide to lease the car, you said that you would drive only 12K miles a year to make sure to stay within the allowed mileage limit and avoid the excess mileage cost. Most lessee would normally get upset once they need to pay for the excess, but they should also take heed that they have gotten something of value for the extra money you had to pay. 

As you probably know, trying to end a car lease is not as easy as trying to start one. Quitting on your car lease means a breach of the original agreement provided for low payments over a fixed number of years. Those low payments are only possible if the lease is completed as agreed.There are several ways to get out of your car lease if you want to. Your first option would be “early termination” and to return your car and pay the lease company what you still owe; which; mind you, can be substantial. However it wouldn’t be as simple as returning the car and paying the penalty, this unfortunately is not how it works. The actual cost can be thousand of dollars , depending on how much of the lease remains.

Your other option is to transfer your car lease to someone who’s interested to take it off your hands (otherwise known as car lease assumption). There are several advantages for this method. It is low cost (no penalties, no payoffs, but transfer fees), it is relatively easy, and it won’t affect your credit score.

There are even a lot of buyers who are seeking for short car lease terms without the need of going to the dealer and associated extra cost which is why car lease assumptions can be so appealing to them.  Before doing this, make sure that you get the permission of the car leasing company. The new lessee must get approved and sing the car lease papers before the car lease assumption can fully consummate.

Where to get help? In the internet. You can find several car lease transfer companies that  has a list of potential buyers who are interested in taking over your lease. They will also help in the assumption process and the paperwork and will charge a reasonable fee for their services — a fee that is more affordable than the early termination costs.

The logic of used car leasing is this: If leasing is based on the depreciation of a vehicle’s value, then it should be less expensive to lease a used car that has already seen its most rapid depreciation during its first year. Used-car leasing can apply to any late model used car, regardless of where you obtain it: from a dealer, from the internet, or from an individual.Unlike new-car leasing which is typically straight forward, used-car leasing is tricky and may require a little more attention. A comprehensive research is advised to ensure that the car you are leasing will suit your needs. Much information is available in car magazines and car websites. There are numerous ads in print and online. It is best to compare car models, costs, frequency of repair records, safety tests, and so on. Watch the mileage of the car, this should have no more than average mileage for the age of the car. Also consider the repair costs since most used cars don’t come with a warranty although there is an exception to this which is the “certified used car”. Most importantly, you must make sure the old car you want will be worth your money. It is important to get hold of price quotations from as many sites as you can.

There are many available used cars for lease and choosing one may be complicated. You should start by knowing your budget and analyzing your needs and knowing the features you require. When you have an idea of the type of car you want to lease, you can start your search online for used car quotes.

Websites offering used car quotes may be direct sellers or referral services connected to a network of other car sellers. It is easy to get a quotation from these sites. You just have to click on a specific car type, make and model. You also have to categorize the year the car was produced and how many miles it has traveled. The site then gives you a quotation at once or emails you the answer to your request.

One of the best ways to evaluate the used-car leasing is to compare your used-car lease quote to a new-car lease quote for the same model.  New-car manufacturers’ promotional incentives, rebates, and discounts can often temporarily make a new-car lease a better deal than the used one. So before deciding make sure you’ve made your comparison.

You have two alternatives to financing your lease. One is to accept the lease company used by the dealer from whom you acquire the vehicle or you can arrange your own lease financing.