Online car leasing is a lucrative business in the world today. Most people aspire to purchase and drive fancy and luxurious vehicles. The broad range of income disparities is what renders this possible or impossible. The inception of online car leasing has prevented many people from carrying the burden of purchasing expensive cars. Auto leasing has substantially increased. Many people own cars based on a lease agreement. The lease agreement is signed by a dealer and a leaser.
The dealer purchases the vehicle on behalf of the client and leases it to the customer. They then sign a contract that requires the customer to pay monthly rental payments. The lease agreement is bound by certain terms and conditions in which the dealer and customer must establish an agreement. The customer may decide to trade the vehicle to the dealer or renew the lease contract by making additional payments on the residual amount at the end of the lease period. Most people opt to own cars under lease because of many reasons. Auto leasing has a broad range of benefits to customers who purchase vehicles on lease.
1. The leaser does not have to cater for the cars maintenance charges such as tire repair. The manufacturer’s warranty covers it.
2. The leaser can possess a car that they could not afford in the case of actual purchasing. The cars are expensive. Many people cannot purchase them using their cash.
3. The leaser does not bear the burden of trading the car at the end of the lease period by turning back the car to the company or dealer.
4. The leaser is only required to pay monthly rental fees that are relatively lower compared to the actual purchase price of the car.
5. Down payment is optional. The leaser decides whether to pay or not.
6. Leasing has an added advantage to the leaser because they pay low tax rates.
7. Most leases provide gap insurance in case the vehicle is stolen or is involved in an accident.
Car leasing is a crucial process that requires individuals to evaluate their knowledge of what the entire process entails before committing themselves through signing the lease agreement. There are fundamental questions that customers should ask before signing the lease contract regardless of whether the client is aware of what is required in auto leasing or not. The top nine questions that anyone who wishes to hire a car should ask include the following;
8. What are the necessary documents for auto leasing? The leasing company may require the leaser to provide documents such as their valid driving license and proof of insurance.
9. What is the car’s residual value? The residual value refers to the relative value or worth of the car after the end of a lease period.
10. What costs are included in the lease agreement? These may include the interest rate and Manufacturer's Suggested Retail Price (MSRP) that vary from one company to another.
11. What are the terms of premature termination of the lease contract?
12. What type of lease is involved?
13. What maintenance expenses are your responsibilities as the leaser? This may include insurance, fuel charges, paying taxes, and repair of tires and wheels.
14. What is the duration of the manufacturer’s warranty and what does it cover? The manufacturer’s warranty may cover the entire lease term and the mileage costs. This depends on the leasing company involved.
15. Can the leaser transfer the warranty to a new owner? What are the underlying conditions behind it?
16. What is the average duration of the lease contract?